The Canadian dollar gained the most against the yen in 10 months as the Group of Seven nations, including Canada, intervened in the foreign exchange markets to stabilize the Japanese currency. Canada’s dollar had its biggest weekly loss in four months versus the U.S. dollar after a nuclear power-plant crisis caused by Japan’s worst earthquake damped investor appetite for higher-yielding currencies.
Explain the changes in demand and supply that brought a rise in the Canadian dollar against the yen and a fall against the U.S. dollar. Illustrate your answer with graphs of the foreign exchange market.