Japan intervenes to stabilise yen as it hits record high against US dollar
Japan sold the yen for the second time in less than three months after it hit another record high against the dollar yesterday, saying it intervened to counter excessive speculation that was hurting the world's third-largest economy.
The intervention vaulted the dollar more than 4pc higher, which would mark its biggest one-day gain in three years, and finance minister Jun Azumi said Tokyo would continue to step into the market until it was satisfied with the results.
Indeed, his deputy later said the intervention was not over, when asked to assess its effects.
"I don't think intervention has ceased yet," Fumihiko Igarashi told reporters.
Many market players voiced doubts the impact would last given that previous intervention had failed to prevent the yen from setting a series of all-time highs against the dollar.
Tokyo's latest foray followed warnings that its patience with the yen's strength was wearing thin, and came just days before the Group of 20 leaders' summit in Cannes, France.
Tokyo is keen to win understanding that a strong yen is one challenge too many for an economy grappling with a nuclear crisis, a $250bn (€178.5bn) rebuilding effort from a March earthquake and tsunami and ballooning public debt.