Japanese Yen Hit Eight Month Record

The yen hit JPY= an eight-month high of
88.23 to the dollar on Monday, but later lost ground as Japan's
finance minister tried to tone down earlier comments suggesting
intervention was unlikely, remarks that had prompted speculators
to pile into the rise.

Here are some milestones in the yen's 138-year history:
1871 - The yen becomes Japan's currency as part of the Meiji
Restoration, which marked the start of Japan's modernisation and
opening to the rest of the world. Japan adopts the gold standard.

1949 - After World War Two the dollar's fixed rate is set at
360 yen via the Bretton Woods system, partly to help stabilise
prices in the Japanese economy.

1959 - The dollar/yen exchange rate is liberalised. The
margin of fluctuation is set at 0.5 percent on either side of its
dollar parity.

1963 - The margin of fluctuation is widened to 0.75 percent.

1971 - United States abandons gold standard. The end of
Bretton Woods system of fixed exchange rates forces a realignment
of world currencies.

Dec. 1971 - Smithsonian Agreement sets the dollar/yen
exchange rate at 308 yen, and allows it to fluctuate in a wider
band between 301.07 yen and 314.93 yen.

1973 - Japanese monetary authorities decide to let the yen
float freely against the dollar, and the yen appreciates as far
as 263 to the dollar.

1978 - The yen pushes through 200 to the dollar for the first
time, strengthening as far as 177.

1980 to 1985 - Yen's appreciation halts and partially
reverses despite Japan's big trade surpluses. Higher U.S.
interest rates see Japanese investors put money in dollar assets.

1985 - The Group of Five industrial nations, the predecessor
to the G7, sign the Plaza Accord in which they agree the dollar
is overvalued and to weaken it. The yen climbs from its
pre-accord level of around 240 to 211 in October and 200 in
November, a 20 percent rise in just a few months.

1986 - The U.S. currency falls further to around 190 yen in
January, 167 yen in April and 153 yen in August.

1987 - In February, six of the G7 nations sign the Louvre
Accord, which aims to stabilise currencies and halt the dollar's
broad decline. The dollar still falls from near 153 to 137 in
April and 120.80 by the end of the year.

1988 - On Jan. 4, the dollar falls to a post-war low of
120.45 yen in Tokyo trade, a level that holds as the low for more
than five years. The Bank of Japan intervenes to buy dollars and
sell yen that day on behalf of the Ministry of Finance.

Aug. 17, 1993 - The dollar declines to a new post-war low of
100.40 yen in Tokyo.

June 21, 1994 - The dollar falls through the key 100 yen
level and touches a record postwar low of 99.85 yen in New York
trade before finishing at 100.30 yen.

April 19, 1995 - The dollar hits a record post-war low at
79.75 yen after U.S.-Japanese trade frictions spark heavy
selling. By the end of the year it is near 103.40.

1998 - Asian financial crisis sees yen weaken to nearly 148
yen vs dollar in August, even after U.S. authorities join the
Bank of Japan to buy yen, spending $833 million, in June.

In October, dollar tumbles from near 136 yen to 111.50 yen,
as carry trades unwind following the near-collapse of hedge fund
major Long-Term Capital Management.

1999 - The yen strengthens further despite repeated
intervention, reaching 102 in November.

2001 - Following the Sept 11 attacks on the United States,
Bank of Japan intervenes to sell yen for dollars.

2003 - The Ministry of Finance begins massive intervention to
halt the yen's rise against the dollar, partly to shield Japanese
exporters as the economy remains stuck in its post-bubble slump
and deflation. The MOF spends 20.4 trillion yen ($200 billion)
over the year, nearly all of it to buy dollars and sell yen.

2004 - The MOF spends 14.8 trillion yen ($145 billion)
intervening in the first quarter of the year, including 1.67
trillion yen buying dollars on Jan. 9 alone. But the MOF ceases
intervention in March and has never since resumed.

2005 - The yen hits a high of 101.67 yen in January but then
falls, hitting 121.40 in December. Yen carry trades and Japanese
investors shifting funds into foreign assets drive the slide.

June 2007 - The dollar hits a 4-1/2-year high of 124.14 yen.

July 2007 - Yen's broad depreciation takes it to a 22-year low
on a real effective exchange rate (REER) basis. Since January
2005 the yen loses 25 percent of its value on a REER basis.

March 13, 2008 - The yen hits a 12-year high of 99.77.

Oct. 24, 2008 - Yen hits 13-year high of 90.87 vs the dollar.
Also sets an all-time high of 55.11 against the Australian
dollar, which loses almost a third of its value in just a month
on a massive unwind of carry trades.

Oct. 27, 2008 - The yen's surge prompts the G7 to issue
statement singling out the yen in warning on currency market
volatility.

Dec 12, 2008 - The dollar falls through 90 yen for the first
time in 13 years after a bill to rescue U.S. automakers fails in
the Senate.

Jan 22, 2009 - Hits fresh 13-year high of 87.10 against
dollar, driven up by risk aversion and option-led dollar selling.

Sept 28 - Marks 8-month high of 88.23 aginst greenback, but
later loses ground as Japan's finance minister tries to tone down
earlier comments suggesting intervention was unlikely.
Sources: Reuters, Bank of Japan, Bank of England

Sept 28 (Reuters) - The yen hit JPY= an eight-month high of
88.23 to the dollar on Monday, but later lost ground as Japan's
finance minister tried to tone down earlier comments suggesting
intervention was unlikely, remarks that had prompted speculators
to pile into the rise.
Here are some milestones in the yen's 138-year history:
1871 - The yen becomes Japan's currency as part of the Meiji
Restoration, which marked the start of Japan's modernisation and
opening to the rest of the world. Japan adopts the gold standard.
1949 - After World War Two the dollar's fixed rate is set at
360 yen via the Bretton Woods system, partly to help stabilise
prices in the Japanese economy.
1959 - The dollar/yen exchange rate is liberalised. The
margin of fluctuation is set at 0.5 percent on either side of its
dollar parity.
1963 - The margin of fluctuation is widened to 0.75 percent.
1971 - United States abandons gold standard. The end of
Bretton Woods system of fixed exchange rates forces a realignment
of world currencies.
Dec. 1971 - Smithsonian Agreement sets the dollar/yen
exchange rate at 308 yen, and allows it to fluctuate in a wider
band between 301.07 yen and 314.93 yen.
1973 - Japanese monetary authorities decide to let the yen
float freely against the dollar, and the yen appreciates as far
as 263 to the dollar.
1978 - The yen pushes through 200 to the dollar for the first
time, strengthening as far as 177.
1980 to 1985 - Yen's appreciation halts and partially
reverses despite Japan's big trade surpluses. Higher U.S.
interest rates see Japanese investors put money in dollar assets.
1985 - The Group of Five industrial nations, the predecessor
to the G7, sign the Plaza Accord in which they agree the dollar
is overvalued and to weaken it. The yen climbs from its
pre-accord level of around 240 to 211 in October and 200 in
November, a 20 percent rise in just a few months.
1986 - The U.S. currency falls further to around 190 yen in
January, 167 yen in April and 153 yen in August.
1987 - In February, six of the G7 nations sign the Louvre
Accord, which aims to stabilise currencies and halt the dollar's
broad decline. The dollar still falls from near 153 to 137 in
April and 120.80 by the end of the year.
1988 - On Jan. 4, the dollar falls to a post-war low of
120.45 yen in Tokyo trade, a level that holds as the low for more
than five years. The Bank of Japan intervenes to buy dollars and
sell yen that day on behalf of the Ministry of Finance.
Aug. 17, 1993 - The dollar declines to a new post-war low of
100.40 yen in Tokyo.
June 21, 1994 - The dollar falls through the key 100 yen
level and touches a record postwar low of 99.85 yen in New York
trade before finishing at 100.30 yen.
April 19, 1995 - The dollar hits a record post-war low at
79.75 yen after U.S.-Japanese trade frictions spark heavy
selling. By the end of the year it is near 103.40.
1998 - Asian financial crisis sees yen weaken to nearly 148
yen vs dollar in August, even after U.S. authorities join the
Bank of Japan to buy yen, spending $833 million, in June.
In October, dollar tumbles from near 136 yen to 111.50 yen,
as carry trades unwind following the near-collapse of hedge fund
major Long-Term Capital Management.
1999 - The yen strengthens further despite repeated
intervention, reaching 102 in November.
2001 - Following the Sept 11 attacks on the United States,
Bank of Japan intervenes to sell yen for dollars.
2003 - The Ministry of Finance begins massive intervention to
halt the yen's rise against the dollar, partly to shield Japanese
exporters as the economy remains stuck in its post-bubble slump
and deflation. The MOF spends 20.4 trillion yen ($200 billion)
over the year, nearly all of it to buy dollars and sell yen.
2004 - The MOF spends 14.8 trillion yen ($145 billion)
intervening in the first quarter of the year, including 1.67
trillion yen buying dollars on Jan. 9 alone. But the MOF ceases
intervention in March and has never since resumed.
2005 - The yen hits a high of 101.67 yen in January but then
falls, hitting 121.40 in December. Yen carry trades and Japanese
investors shifting funds into foreign assets drive the slide.
June 2007 - The dollar hits a 4-1/2-year high of 124.14 yen.
July 2007 - Yen's broad depreciation takes it to a 22-year low
on a real effective exchange rate (REER) basis. Since January
2005 the yen loses 25 percent of its value on a REER basis.
March 13, 2008 - The yen hits a 12-year high of 99.77.
Oct. 24, 2008 - Yen hits 13-year high of 90.87 vs the dollar.
Also sets an all-time high of 55.11 against the Australian
dollar, which loses almost a third of its value in just a month
on a massive unwind of carry trades.
Oct. 27, 2008 - The yen's surge prompts the G7 to issue
statement singling out the yen in warning on currency market
volatility.
Dec 12, 2008 - The dollar falls through 90 yen for the first
time in 13 years after a bill to rescue U.S. automakers fails in
the Senate.
Jan 22, 2009 - Hits fresh 13-year high of 87.10 against
dollar, driven up by risk aversion and option-led dollar selling.
Sept 28 - Marks 8-month high of 88.23 aginst greenback, but
later loses ground as Japan's finance minister tries to tone down
earlier comments suggesting intervention was unlikely.
Sources: Reuters, Bank of Japan, Bank of England
(Writing by Mathew Veedon and Eric Burroughs)