Japan may step in to weaken the rising yen - Business - Evening Standard
       

Japan may step in to weaken the rising yen

The yen today shot up against the dollar, hitting 14-year highs and triggering speculation the Japanese government could intervene in the currency markets to weaken it.

Officials in the world's second-biggest economy are concerned that the yen's strength will hurt exports of cars, electronics and other consumer goods.

The issue is fast becoming a major political headache for the new government there as exports are expected to drive its economic recovery.

As the yen charged above 85 to the dollar, finance minister Hirohisa Fujii said he would contact officials in the US and Europe if it was felt intervention was needed.

The currency has seen a flood of investors rushing to it in search of safe havens as they fled from emerging markets in the wake of the Dubai scare.

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