A momentary break

Yen Falls as U.S., Canada Join G-7’s Post-Earthquake Currency Intervention

By Catarina Saraiva and Charles Mead - Mar 18, 2011 11:01 AM GMT-0300

• The yen declined the most in more than two years against the dollar as the Group of Seven nations jointly intervened in foreign-exchange markets for the first time in more than a decade.

Japan’s currency slumped against all its major counterparts as the Federal Reserve and Bank of Canada joined the Bank of Japan and European central banks in an effort to sell the yen. G-7 finance ministers and central bank chiefs said after a conference call yesterday to discuss the impact of the March 11 earthquake that they will “provide any needed cooperation.”
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Comment: No amount of intervention can stop the avalanche. We've been long the yen and will stay long. For those who've missed the ride it will pay to go against the interventionists.