The Japanese yen tumbled to the lowest level in two years against the US dollar on Friday, as G-7 nations promised that they will jointly intervene in currency markets to help Japan’s recovery from the disastrous earthquake and tsunami.
The USD/JPY recorded a high of 81.87 from 79.17 in Asian trading on Friday, before consolidating at 81.79.
Further, yen fell against all of its major counterparts as country’s finance minister Yoshihiko Noda said that G-7 countries would start selling yen in each country when its trading session opens, Reuters reported.
Intervening for the first time in currency markets since 2000, 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.
Japan’s benchmark Nikkei 225 gained 2.7 percent or 244.08 points on Friday, after the G-7 nations pledged to curb the yen’s surge.
The G-7 announcement came a day after the yen surged to all-time high of 76.53 against the US dollar on Thursday.
Also, yen weakened against the euro, with the pair EUR/JPY climbing to 115.02 from 110.61.
The euro was higher against the greenback on Friday, reaching a high of 1.4085, before trading around 1.4070. The pair is likely to find support at 1.4100.