The euro gained against the dollar on Friday, following G-7 nations' coordinated intervention to weaken the surge of Japanese yen. The single currency traded at 1.4135 in early New York trading, breaching the key resistance level of 1.4075.
We confirm the European Central Bank (ECB) took part in the joint foreign exchange intervention mentioned in the G7 statement,” Forexpros reported, quoting a spokesperson of ECB.
The G-7 officials said that the United States, the United Kingdom, Canada, and the European Central Bank will join Japan in concerted intervention in exchange markets from Friday, to calm down the yen’s surge.
The ECB, the Bank of England, German Bundesbank, the Bank of France and the Bank of Italy confirmed their participation to depreciate the yen against the dollar on Friday, Action Forex said.
Earlier on Friday, the yen tumbled to the lowest level in two years against the US dollar, reaching a high of 81.87 from 79.17 in Asian trading.
The G-7 announcement came a day after the yen surged to all-time high of 76.53 against the US dollar on Thursday.
USD/JPY's rebound from all-time high could extend further to test key resistance level at 84.49.