Nikkei 225 · July 7, 1995
Intervention against the strong yen
+6.27%
single-day change vs previous close
Part of a longer stretch
The year the rescue bought
early in it · 1995-07-03 → 1996-06-26, +56.48% over the whole period
What happened that day?
- On 7 July 1995 the Nikkei 225 rose 6.27% in a single day
- That spring the yen had strengthened to record levels and Japanese exporters were being badly hurt
- A stronger yen means fewer yen back on the same sale — a direct loss for an export-driven economy
- Japan and the US intervened together in the currency market, buying dollars and selling yen, and the yen weakened
- The Bank of Japan cut rates at the same time to support the economy
- With the yen settled, exporters' earnings outlooks improved and shares rose sharply
Sources
Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.