Currency Intervention Revived as Fed May Ease

Source:

"Japanese and Swiss moves to weaken the yen and the franc show reviving tension in foreign-exchange markets as the deteriorating U.S. economy weighs on the dollar."

Bloomberg, Shamim Adam

Just eight months ago, Brazilian Finance Minister Guido Mantega declared a "truce" in competitive currency devaluations. Now, Japanese and Swiss moves to weaken the yen and the franc show reviving tension in foreign-exchange markets as the deteriorating U.S. economy weighs on the dollar.

Japan sold yen today, causing the currency to weaken more than 4% against the dollar after rising 5% last month. "Ongoing one-sided moves" would hurt the recovery from a March earthquake, Finance Minister Yoshihiko Noda said. Yesterday, the Swiss National Bank cut interest rates to rein in the franc after a gain of about 36% in the past 12 months. . .View full article

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