Japan intervenes to weaken yen
The Japanese government has intervened in the currency market in a bid to stem the continued strengthening of the yen.
Jun Azumi, Japanese finance minister, gave an order to sell yen and buy US dollars after the yen hit a post-war high. The country has intervened in the market three times already this year.
The dollar sank to a record low of ¥75.31, touching its lowest point since the end of the Second World War. The government’s intervention caused the yen to fall by as much as 5% against the dollar.
Although Azumi would not confirm how much was spent on tackling the “one-sided and speculative movement” in the yen’s exchange rate, he says Japan will continue to intervene in the currency market until the government is “satisfied”.
The currency has appreciated over the course of the year as investors flock to it as a safe haven from the eurozone debt crisis. However, its strengthening is damaging the country’s exports and raising concerns over its ability to recover from the March 11 earthquake and tsunami.
Last week, the Bank of Japan boosted its asset purchase programme by ¥5 trillion (£41 billion) to ¥55 trillion as part of its continued drive to encourage growth in the world’s third largest economy.
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