News Headline Summary
Upon the news of the Japanese earthquake, the JPY saw initial strength, bringing USD/JPY to session lows of 82.18, on the back of expectations of repatriation flows from Japanese Insurers, before USD/JPY recovered to 82.30 as further details emerged
- Following the earthquake in March 2011, the JPY saw significant strength, as expectations of repatriation flows grew, as Japanese Insurers would have to buy the local currency in order to cover damage and loss claims.
- Over a five-day period in March 2011, USD/JPY fell from 83.00 to 76.35 due to this effect. The Bank of Japan was forced to intervene against the broad JPY strength to bring the pair back to 81.00 on the 18th March.
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