G-7 agrees on joint currency intervention (by Sarah Turner)
SYDNEY (MarketWatch) -- The Group of Seven announced joint intervention in the currency markets on Friday at the request of Japan. The United States, the United Kingdom, Canada, and the European Central Bank will join with Japan on Friday in concerted intervention in exchange markets, according to the statement. The G-7 made the move after a massive earthquake and tsunami devastated Japan last week. The yen soared after the event, recently touching a record high against the dollar and sparking speculation of currency intervention. The Bank of Japan said Friday that it "strongly expects" that concerted action with G-7 member countries in the foreign exchange market will contribute to the stable formation of foreign exchange rates. "The Bank of Japan will pursue powerful monetary easing and, to ensure stability in financial markets, will continue to provide ample liquidity," it said. The dollar bought 80.77 yen after the announcement and Japanese stocks gained in early trading.