The Group of Seven industrialized nations has opened a coordinated currency intervention for the first time in over a decade in an effort to help Japan restrain a rapid increase in the yen following the earthquake, tsunami, and nuclear crisis, according to Financial Times. On Friday, the G7 announced the intervention, which is the first since it aided the euro in 2000. The Federal Reserve, European Central Bank, and Bank of Canada are participating in the operation to weaken the yen.
G7 leaders agreed to a “concerted intervention in exchange markets” following the “tragic events” in Japan, although officials declined to make public specifics regarding the size yen sales or the target price, but the goal is to stabilize the currency. The move comes as Japan bought billions of dollars to restrain growth of the national currency, and traders expect officials to fight strongly to keep the currency above the ¥80 per dollar level. The yen traded at ¥83 before the earthquake, and fell to ¥76.25 on Thursday, and has rebounded back above ¥80 since the G7 announcement.