Currency Markets & Japanese Yen Stabilized by G7 Intervention

Mar 18, 2011, 10:53 by David Hope

Currency markets have earned the attention of the G7, who were forced into action over the volatility surrounding the Japanese Yen.

Stock markets on Wall Street rose early Friday after Libya announced a cease-fire and the Group of Seven said it would intervene to help stabilize the yen.

The yen bolted higher in value following the powerful earthquake and tsunami that leveled coastal villages a week ago. The G7 announced Thursday it would sell yen to calm the overheating currency, which had hit a record 76.25 against the dollar this week.

The G7 said it would show "solidarity" with Japan.

The yen on Friday dropped to 80.917 per dollar.

In Libya, an announced halt to military operations against rebels brought April delivery crude oil down to $100.66 per barrel on the New York Mercantile Exchange. There are reports, however, the cease-fire did not hold.

Financial firms Friday received a boost from the U.S. Federal Reserve, which loosened restrictions on bank dividend payments to shareholders imposed in 2008 during the financial crisis.

In afternoon trading, the Dow Jones industrial average rose 115.98 points or 0.99 percent to 11,890.60. The Standard & Poor's 500 index rose 10.01 or 0.79 percent to 1,283.73. The Nasdaq composite index gained 16.01 or 0.61 percent to 2,652.06.

The 10-year treasury note fell 5/32 to yield 3.28 percent.

The euro rose to $1.4182 from Thursday's $1.4022.

In Tokyo, the Nikkei 225 index rose 2.72 percent, 244.08, to 9,206.75.

In London, the FTSE 100 index added 0.39 percent, 22.02, to 5,718.13.

Source: UPI