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
Analysis details (09:49)
- 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.
07 Dec 2012 - 09:42
Subscribe Now to RANsquawk
Click here for a 1 week free trial
RANsquawk provides audio news and commentary for over 15,000
professional traders and brokers worldwide. Services include:
Real-time audio coverage from 0630 to 2200 London time plus Asia-Pac 2200 to 1000 London time
Teams of analysts covering equities, fixed income, FX, energy, and metals markets
Real-time scrolling news service with instant analysis
Daily and weekly pre-market research and calendars
Video updates covering near-term key risk events & primary trading themes
One-to-one chat with our expert analysts