Japan's Finance Minister put traders on alert for possible currency intervention yesterday as the yen rose to a record high against the dollar, threatening to further squeeze exporters' profits and hold back economic recovery.
"The dollar/yen rate fell sharply, to between 75 and 76 yen, in a short time," Jun Azumi said. "This is an utterly speculative move and not reflecting the economic fundamentals at all. This is regrettable. If this move becomes excessive, we have to take decisive action."
Since September last year, Japan has intervened twice on its own and once jointly with other Group of Seven nations to weaken the yen, but the effects have proved shortlived.