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| Version 3 | Version 4 |
|---|---|
| Yen hits record-high against US dollar as Nikkei falls | Yen hits record-high against US dollar as Nikkei falls |
| (about 1 hour later) | |
| The Japanese yen has hit its highest level against the US dollar since the end of the Second World War. | The Japanese yen has hit its highest level against the US dollar since the end of the Second World War. |
| The yen climbed as high as 76.25 against the dollar in US trading on Wednesday. In Asia on Thursday, it was closer to 79.42. | The yen climbed as high as 76.25 against the dollar in US trading on Wednesday. In Asia on Thursday, it was closer to 79.42. |
| The Nikkei 225 index shed 2.7% to 8,845.49 on concerns about the impact of a strong yen on exporters' profits. | The Nikkei 225 index shed 2.7% to 8,845.49 on concerns about the impact of a strong yen on exporters' profits. |
| G7 finance ministers have called a meeting on Thursday to discuss how to deal with global market volatility. | G7 finance ministers have called a meeting on Thursday to discuss how to deal with global market volatility. |
| The G7 is a group of the world's seven richest nations, including the US, Japan, the UK and China. | The G7 is a group of the world's seven richest nations, including the US, Japan, the UK and China. |
| Analysts expect the ministers to give Japan the go ahead to intervene in currency markets to stabilise the yen. | Analysts expect the ministers to give Japan the go ahead to intervene in currency markets to stabilise the yen. |
| "It seems inevitable that the yen will be part of a broader discussion on stabilising global markets," said Alan Ruskin of Deutsche Bank. | |
| "It would be nothing short of amazing if they fail to at least make some veiled threat of intervention," he added. | "It would be nothing short of amazing if they fail to at least make some veiled threat of intervention," he added. |
| 'Nervous' | 'Nervous' |
| Japan's Finance Minister Yoshihiko Noda declined to comment on whether or not Japan would step into the market but said he would keep an eye on developments. | Japan's Finance Minister Yoshihiko Noda declined to comment on whether or not Japan would step into the market but said he would keep an eye on developments. |
| "I will be closely watching market moves today," he said. | "I will be closely watching market moves today," he said. |
| The minister has blamed speculation for the yen's surge. | The minister has blamed speculation for the yen's surge. |
| "Market moves have been nervous amid speculation, while trade has been thin," Mr Noda said. | "Market moves have been nervous amid speculation, while trade has been thin," Mr Noda said. |
| Analysts have been blaming the strengthening of the yen on the repatriation of assets and foreign currency by Japanese insurance firms. | Analysts have been blaming the strengthening of the yen on the repatriation of assets and foreign currency by Japanese insurance firms. |
| Cash injection | Cash injection |
| In an effort to ease market concerns and provide liquidity, Japan's central bank pumped 5 trillion yen ($63bn; £39bn) into the banking system. | In an effort to ease market concerns and provide liquidity, Japan's central bank pumped 5 trillion yen ($63bn; £39bn) into the banking system. |
| This is the fourth such injection of funds by the Bank of Japan, taking its total funds inflow to 33tn yen. | |
| Analysts say that given the current market situation and the strength of the yen, the central bank may now go a step further and intervene in markets to stem the currency's rise. | Analysts say that given the current market situation and the strength of the yen, the central bank may now go a step further and intervene in markets to stem the currency's rise. |
| "Apart from intervention, there isn't much to stop this slide and the dollar doesn't look like it's coming back soon," said Brian Dolan, chief strategist at Forex.com. | "Apart from intervention, there isn't much to stop this slide and the dollar doesn't look like it's coming back soon," said Brian Dolan, chief strategist at Forex.com. |