Bloomberg News

Japan Refrained From Selling Yen This Month, MOF Says

April 27, 2012

Japan refrained from selling yen in the foreign-exchange market this month, the Ministry of Finance said on its website today.

The nation didn’t sell any of its currency from March 29 to April 25, the ministry’s regular month-end data showed. The yen slid in February and March and is poised for a 2.9 percent advance against the dollar this month.

The last time Japan intervened in the currency market to stem the yen’s appreciation was on Nov. 4. The nation sold 1.02 trillion yen ($12.7 billion) during the first four days of November, following a record daily sale of 8.07 trillion yen on Oct. 31, according to ministry data. Its intervention totaled 14.3 trillion yen last year, the third-largest yearly amount after 20.43 trillion yen in 2003 and 14.83 trillion yen in 2004, ministry data showed.

The Japanese currency tends to strengthen during economic and financial turmoil because the nation’s current-account surplus makes it less reliant on foreign capital. A stronger domestic currency, which reached a postwar record of 75.35 per dollar on Oct. 31, hurts the overseas competitiveness of exporters and reduces the value of their repatriated income.

To contact the reporter on this story: Toru Fujioka in Tokyo at tfujioka1@bloomberg.net

To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net


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