Yen falls against dollar, euro after Japan intervention

TOKYO (AP) — Asian shares rose Wednesday as Japan's benchmark surged to its highest level since Sept. 2008 though wariness over corporate earnings pulled European indexes lower in early trading.

By MarketPulse FX: By Scott Boyd In response to a record high of 75.95 yen to the dollar, Japan’s Finance Minister Yoshihiko Noda promised “bold actions” noting that he “won’t rule out any possible options” in dealing with the yen’s appreciation. The strong language helped push the yen lower during Monday’s trading session but few believe Noda’s pledge will have a long-term effect.

By Forexyard: By Russell Glaser Tough talk from Japanese officials continues to spark speculation of additional intervention in the FX markets to weaken the yen. Market positioning is also overextended and a move higher in the USD/JPY could be sharp and quick.

THE G7 has waded into foreign exchange markets to push down the yen, its first coordinated currency intervention in more than a decade. The actions have, in the short-term, worked: the yen, which had risen to a post-war high of 77 per dollar a few days ago fell back to almost 82 and is now around 81.

Prime Minister Naoto Kan on Thursday pledged further "decisive" steps in currency markets if needed, a day after Japan stepped in to tame the yen in a move that drew European and US criticism."We are determined not to allow the drastic fluctuation of the yen," he told a business conference in Tokyo.Japan on Wednesday intervened in world currency markets for the first time since 2004 to weaken the yen and help safeguard its faltering export-driven recovery.

Henrique Simoes submits:Japan intervened in the forex markets for the first time since 2004 to put a curb on the yen that threatened an export-led recovery.

The dollar fell to the lowest level in more than eight months against the yen on Wednesday, as weak US data fuelled doubts about the strength of recovery in the world's top economy, dealers said.Elsewhere, the euro retreated a day after reaching a three-month high against the US unit.The dollar sank to 85.33 yen, touching the lowest level since November 27 following recent comments from Japanese Finance Minister Yoshihiko Noda about yen strength. It later pulled back slightly to stand at 85.48 yen.