The Japanese yen is once again in the spotlight after the government finally delivered on its threat to weaken the currency in a bid to provide relief to its export heavy economy.
 

USD/JPY surged 264 pips from a new 15-year low of 82.87 on Wednesday morning after the government aggressively sold yen this morning, its first intervention in the foreign exchange markets since 2004. Nikkei News reported that the government may have sold over ¥100 billion yen to finance the moves.
 

Following official news that the government intervened, Finance Minister Yoshihiko Noda said that he stood ready to take additional measures to control the rise of the yen. Officials have also said that the government planned to continue its actions during the European and North American sessions.
 

Also pressuring the currency are rumors reported by Reuters, saying that the Bank of Japan may ease monetary policy even further at its meeting in October, in a bid to bolster the government’s actions. There has been no talk of an emergency meeting, adds the Reuters report.
 

Despite this, Bank of Japan Monetary Policy Board Member Tadao Noda said that the interventions will not directly impact the central bank’s monetary policy, which focuses only on the risks to economy.
 

Meanwhile, Bank of Japan Governor Masaki Shirakawa issued a statement saying he hoped the interventions would work to stabilize the foreign exchange markets.
 

The moves have also weakened the Swiss Franc, another risk-averse currency, which is down 0.6% on the day against the USD.