BOJ intervenes in currency market to support dollar.TOKYO, Sept. 17 Kyodo (EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. : ADDING INFORMATION) Japan's monetary authorities on Monday conducted a dollar-buying, yen-selling intervention to stem further falls in the U.S. currency in the aftermath of last week's terrorist attacks in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The intervention, conducted by the Bank of Japan (BOJ BOJ Bank Of Japan BOJ Bank of Jamaica BOJ Bourgas, Bulgaria (Airport Code) BOJ Beginning of Job ), came a little after noon after the dollar briefly dropped to as low as 116.90 yen in Tokyo morning trading for the first time since Feb. 28. The dollar, whose midday quote was 117.02-05 yen, shot up to 118.00 yen on the intervention, but later eased a little to the upper half of the 117 yen level. At 1 p.m., it was quoted at 117.75-85 yen. Finance Minister Masajuro Shiokawa Masajuro Shiokawa (塩川正十郎 Shiokawa Masajūrō, born October 13, 1921) is a Japanese politician. Born in Fuse City (now Higashi-Osaka City), Osaka Prefecture, he graduated from the economics faculty of Keio University in 1944 issued a written statement, saying, ''The recent sharp appreciation of the yen in the exchange markets could have undesirable implications for the recovery of Japan's economy.'' ''In this context, we have taken appropriate actions today in the exchange market,'' Shiokawa said. Japan last conducted dollar-buying, yen-selling intervention on April 3, 2000. The dollar has been weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. due to the terrorist attacks against
the United States last Tuesday which have increased concerns over the
outlook of the U.S. economy.
The dollar's slide has been a headache for the Japanese authorities as it throws cold water on the ailing economy by hurting the earnings of Japan's major exporters. Japan also hopes for a weak yen because it will bolster the efforts by the BOJ and the government to combat deflation deflation: see inflation. deflation Contraction in the volume of available money or credit that results in a general decline in prices. A less extreme condition is known as disinflation. . |
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