The dollar/yen is surging to 81+ on a coordinated effort by central banks to prop up the currency. The BOJ announced the formal intervention this evening (via Reuters):
“(Reuters) – The Japanese yen fell more than two percent on Friday after the the Group of Seven (G7) finance ministers and central bankers agreed to join a yen-selling intervention after an emergency teleconference.
The dollar/yen rose to as high as 81.20 yen from around 79.20 yen after Japanese Finance Minister Yoshihiko Noda announced the G7 agreement. Noda also said the Bank of Japan would start intervention at 9:00 a.m. (0000 GMT).”
What a turnaround. Just 24 hours ago the Yen was collapsing to 76. Equity futures are loving the news and rallied 15 points in the last hour. There is no telling whether this will have any sustained impact, however. Past interventions have proven temporary at best.