4th August 2011
The Bank of Japan also announced an additional Y10,000bn to its Y40,000bn asset-purchase programme, to limit the damage of the country's rising currency on the export-driven recovery in the wake of the devastating earthquake and nuclear disaster earlier this year.
The latest move in the crisis that is gripping the financial markets came amid volatile trading in European stock markets, adds the Guardian.
However, the intervention by the BoJ sent the yen lower sharply against the dollar and the euro. It came just a day after Switzerland's national bank intervened to weaken the Swiss franc and said it would increase the supply of the Swiss currency to money markets to stem the rapid rise of the franc.
But how likely is this tactic to succeed over time? asks Mindful Money blogger Shaun Richards.
He comments on his blog: "As they join their currency twin the Swiss National Bank in attempting to weaken their currency I have a thought for you about how likely it is to succeed over time. Back on the 18th of March we saw concerted central bank intervention which drove the Yen up to 85 versus the US dollar. After a nearly 4% rally this morning the Yen is just under 80. A lot of money has been spent to be worse off….."
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