On 18th March 2011 the G7 central banks intervened in an effort to dampen the strength of the yen. It is becoming clear now that the recovery in USD-JPY that was ensued was not sustainable. At prices of temporarily below 80 in USD-JPY markets have now returned to the “danger zone”. We expect a renewed intervention on the part of the central bankers, but not at current levels.
Commerzbank Corporates & Markets
Foreign Exchange