The world’s most powerful nations agreed to intervene in exchange markets in order to stem excessive volatility caused by the rising yen, which is undermining demand for Japanese exports.
World markets responded to the announcement immediately as the yen began dropping in value against the dollar and the Japanese stock market turned upward.
The last time the Group of 7 nations intervened together in the currency markets was 2000, to stabilize the euro.
Stabilizing exchange rates is intended to curb speculation, which the Japanese government described as a main driver of recent market activity, according to the New York Times. A falling yen will also cut the cost of Japanese goods for consumers in other countries.
In the meantime, the Wall Street Journal reports on how the Japanese crisis is affecting the steel industry.