NY Fed intervenes in Yen currency trade

NEW YORK (Dow Jones)–The Federal Reserve intervened in the currency market Friday, buying dollars and selling yen as part of a coordinated effort by Group of Seven nations to weaken Japan’s currency.

It was the first coordinated currency intervention since 2000. The intervention began in Tokyo with the Bank of Japan intervening. The Bank of England, Bundesbank, Banque de France and Bank of Italy all intervened during European trading, and the Bank of Canada also intervened.

The initial intervention from the Fed came right at 8 a.m. EDT, the start of the New York trading day. Three U.S. banks familiar with the intervention told Dow Jones Newswires the Fed’s trades early in the New York day totaled about $50 million.