The rout in the so-called risk currencies (Aussie dollar, New Zealand dollar, etc) and the rise in the yen is very disturbing. If anything, the forex market is where the Central Banks will intervene.
Ah, this just came over my news feed:
TOKYO (Dow Jones)—Bank of Japan Gov. Masaaki Shirakawa reiterated Tuesday that the central bank is paying particular attention to the negative impact of rises in the yen, which is now hovering around the Y77 mark against the dollar.
“Amid high uncertainties about overseas economies, particular attention must be paid to the negative impact of the yen’s appreciation on the Japanese economy via falls in exports and deterioration in firms’ profits and business sentiment,” Shirakawa told an upper house fiscal and financial affairs committee.
The BOJ chief added that a higher yen could have positive effects by increasing the nation’s purchasing power in the long term, while negatively affecting exports in the short term.
Aso desu ka...
Aug 08 22:53 *DJ 1 Big Non-Japan Bank Seen Buying Dlr/Yen, Euro/Yen Actively - 2 Dealers
Aug 08 22:53 *DJ Unlikely Yen Fall Due to Japan Intervention - 2 Dealers