Context
Seven major industrialized nations have decided to support the Japanese economy by stepping into currency markets in an attempt to control instability in Japanese yen. A joint statement from G-7 said that the US, Canada, Britain and the European Central Bank (ECB) would join forces with Japan today in a “concerted intervention” in exchange markets.
Earlier this week, the yen hit a record high against the dollar since the end of the Second World War, adding to concerns over Japan’s recovery. This is the first time for G-7 to jointly intervene in currency markets since 2000.
