Corporate foreign exchange news

Japan pumps yen following disasters

Monday, 14 March 2011 08:59:48 GMT

Published by Mark Smith-Halvorsen
Japan has added a record level of cash to its financial system as part of an effort to help protect the economy from the natural disasters affecting the nation.
A total of some 15 trillion yen has been added to the money markets as the country looks to ensure its economy remains as stable as possible following the earthquake that struck on Friday (March 11th).
The yen had reached a four-month high against the dollar but has declined in early foreign exchange market trading today.
According to Bloomberg, the currency has declined against 13 of its 16 major partners in early trading.
As well as pumping extra cash into the economy, the Bank of Japan has doubled its asset purchase facility. The benchmark interest rate has remained the same in the range of zero to 0.1 per cent.
Prior to the cash injection, Japan's currency surged higher as stocks fell.
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