- Title: JAPAN: Yen soars to four month high on euro zone worries
- Date: 14th July 2011
- Summary: TOKYO, JAPAN (JULY 13, 2011) (REUTERS) TRADERS AT UEDA HARLOWS TRADING HOUSE CALLING OUT RATES VARIOUS OF TRADERS ELECTRONIC BOARD SHOWING YEN/DOLLAR RATE AT 79.35 MORE OF UEDA HARLOWS WITH STAFF CALLING OUT RATES
- Embargoed: 29th July 2011 13:00
- Keywords:
- Location: Japan, Japan
- Country: Japan
- Topics: Finance
- Reuters ID: LVAB1PQ00ZV1BTWM6BPCC2ORH05Y
- Story Text: The Yen rose to 4-month highs on Wednesday (July 13) on euro zone debt worries, prompting Japan to say that it would watch for any rapid moves that it called "undesirable".
The Japanese currency rose as high as 78.48 against the dollar on EBS on Wednesday, the highest since its ascent to a record high of 76.25, days after the March 11 earthquake. That surge spurred joint currency intervention by Group of Seven nations.
The yen gained against the dollar and the euro, as investors sought the currency as a safe haven, amid escalating worries that the threat of contagion from Greece's debt crisis could force more European countries to seek financial aid.
Japan's top government spokesman Chief Cabinet Secretary Yukio Edano said that the Japanese government would keep an eye on further movement.
"As our position is that rapid moves, that do not reflect the underlying situation, are undesirable, we intend to continue watching the market," Edano said.
Japanese policymakers are sensitive to yen rises as they could harm Japan's export-led economy, which is just recovering from the devastating earthquake.
The Tokyo Stock Exchange, currently dimmed to help deal with Japan's summer power shortage, saw a slight fall in stocks before the benchmark Nikkei 225 average recovered to a high of 9973.23, before closing morning trading. - Copyright Holder: REUTERS
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