Yen falls from recent high as G-7 considers action
NEW YORK — The yen pulled back from post-World War II highs against the dollar yesterday amid mounting expectations that the finance chiefs from the world’s leading industrialized nations will consider intervening to stem the currency’s surge.
The finance ministers of the Group of Seven industrialized countries were due to hold a conference call yesterday — which would be just before Tokyo’s markets are due to open today, according to the French government. They are expected to discuss ways to calm markets following last week’s devastating earthquake and tsunami.
The yen rose to its highest level since World War II against the dollar late Wednesday. The dollar fell to as low as 76.32 yen, but rose to 78.97 yen yesterday afternoon.
The previous postwar low had been 79.75 yen, set in April 1995.
Analysts said the prospect of coordinated action by the G-7 was one reason the upward pressure on the currency has eased. Speculators are more wary of buying the currency.