Japan confirms March interventions

Speculation that the bank had been intervening has been circling the currency markets in recent weeks (FX Week, March 31) but few had expected the spree to be so large.

The rise can be partly explained by the Japanese fiscal year, which ended last Monday (March 31). In the run-up to fiscal year-end, Japanese firms with overseas operations repatriate foreign earnings for inclusion in their accounts. This creates a seasonal demand for yen and can force the currency to strengthen, something tha