Bloomberg News

Yen Erases Gains Against Dollar Amid Intervention Speculation

July 14, 2011

July 14 (Bloomberg) -- The yen erased gains against the dollar amid speculation Japan will act to weaken the currency.

The yen earlier advanced for a fifth day against the dollar, touching the strongest level in almost four months. Japanese Finance Minister Yoshihiko Noda said today it would be “problematic” if recent one-sided currency movements continue. That fueled concern Japan will sell yen to halt gains.

“It’s not confirmed intervention at this stage,” said Sue Trinh, a senior currency strategist at Royal Bank of Canada in Hong Kong. “Clearly the market is nervous as we probe the lowest levels since March 17 and certainly the jawboning from officials has stepped up.”

The yen traded at 79.00 per dollar as of 6:48 a.m. in London from 78.98 yesterday in New York. It was as strong as 78.47 earlier today, most since March 17.

--Editors: Naoto Hosoda, Nicholas Reynolds

To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net.

To contact the editor responsible for this story: Nicholas Reynolds at nreynolds2@bloomberg.net.


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