DJ MARKET TALK: Japan's FX Move "Ad Hoc," To Stem Volatility -Goldman
0315 GMT [Dow Jones] The Japanese government's latest JPY-selling intervention was meant to prevent further volatility, after the currency surged to a new record high against the USD earlier, says Naohiko Baba, chief economist for Japan at Goldman Sachs, in a research note.
"This was an ad hoc intervention designed to stem extreme volatility," after the USD/JPY fell to a new record low of 75.31 before Tokyo trading began this morning, Baba says.
The move came despite "awareness of the yen's tendency to settle in Tokyo trading after posting highs in New York," Baba says.
The MOF's desire to staunch further falls in the USD/JPY, trumped "the desire not to provoke the U.S. and Europe, which are not in favor of coordinated intervention, ahead of the Nov. 3-4 G-20 meeting," he adds.
The USD/JPY is at 79.20, up from 75.65 just before the intervention.
Source: Dow Jones Newswire