G7 Pledge Lifts Dollar, Japan Stocks

The Group of Seven on Friday agreed for a rare joint currency intervention, pushing the dollar higher against the yen and lifting Japanese shares.

The dollar moved further off a record low hit on Thursday of 76 yen, as the G7 buying plan came as a surprise to global investors.

Japan’s finance minister said the Bank of Japan had begun selling yen, while other central banks would intervene as their markets opened later in the day.

The first coordinated intervention in about 11 years aimed to tame the soaring yen, which could make it more difficult for Japan’s export-dependent economy to recover from a spate of horrific disasters.

Damage estimates from the earthquake, tsunami and nuclear power crisis now exceed $200 billion, potentially throwing the nation back into recession.

After losing more than $500 billion in value early in the week, the Nikkei jumped but still remained sharply lower since last Friday’s disasters.

Japanese exporters such as Tokyo Electron and TDK climbed, but investor eyes remained on the crippled Fukushima nuclear power plant and government efforts to stave off further calamity, with success or failure certain to drive trading in the weeks ahead.

Foto: NTD