The Yen continues to rise on Tuesday following Monday’s statement by Taro Aso, Minister of Finance of Japan, who has said that the Bank of Japan is ready to carry out intervention to the currency market, as rapid change in the exchange rate of the Yen is undesirable and recent rise in the Japanese currency is excessive.
Japanese stock index Nikkei Stock Average has grown by 2.2% up to 16565.00 points at the end of the Asian session and the pair USD/JPY grew up to 108.90.
Earlier the Yen rose due to lack of measures by the Bank of Japan at the meeting on 28 April, when investors waited for the further monetary policy easing, as the Bank’s representatives had repeatedly expressed their adherence to soft monetary policy. This time the Bank also pronounced the famous expression that additional monetary policy measures would be adopted if the need be.
However, the measures expected by the market participants have not been adopted. At a result the Yen sharply fall in the market.
Immediately after the announcement of the decisions of the Bank of Japan the pair USD/JPY fell by 2.4%,. The Yen demonstrated the highest rise since 24 August 1015. Japanese stock index Nikkei Stock Average fell by 3.6% to 16666.05 points. During two days after the decision of the Bank of Japan the pair fell by over 500 points.
It is obvious that such rise in the Yen raises concern of the Japanese government. On Tuesday Minister of Finance Mr. Taro Aso said that intervention seems an effective measure. The pair USD/JPY can break out the level of 109.00 due to possibility of intervention.
It is not expected that the JPY will exceed the level of 110.00 due to the sales of the USD.