Posted: January 17th, 2016

Did the intervention succeed? Explain the reasons for your answer

The graph below is the exchange rate of Japanese Yen to US dollar (¥/$) between August and November 2010. On 15th Sept, Yen moved from 83 to 85.7 yen per dollar due to the Japanese authorities’ intervention in the foreign exchange markets to weaken the value of the yen against the dollar, a day after the yen hit a 15-year high against the dollar.