Friday, March 18, 2011

G7 Intervenes To Weaken Yen

Following the sharp spike the value of the yen caused by the tsunami related problems of the Japanese economy, the G7 last night intervened to lower the yen's value.

Currency interventions are often costly and/or ineffective, but given how much damage the perverse yen rally inflicted on the already damaged Japanese economy, this move was justified.