Japanese Yen ETF Falls On Intervention
Shares of the CurrencyShares Japanese Yen Trust ETF (NYSE: FXY) have lost around 3% to $126.34 on Monday after the Japanese central bank intervened to stop a sharply rising Yen. The rise of the Yen versus the Dollar is taking a toll on the Japanese economy. Finance Minister Jun Azumi said that Tokyo would continue to step into the currency market until it got the intended results. His deputy told reporters that "I don't think intervention has ceased yet."
Prime Minister Yoshihiko Noda said, "We started currency intervention this morning in order to take every measure against speculative and disorderly moves and to prevent risks to the Japanese economy from materializing." The move has sent the U.S. Dollar higher as safe-haven flows rotate out of the Yen and into the greenback. This in turn has put stocks and commodities under pressure on Monday.
