Japan moved on Wednesday to prop up the dollar and weaken the yen in a bid to protect its export-led economy, intervening in international currency markets for the first time since 2004.
The Japanese monetary authorities bought dollars and sold yen, pushing it to about 84.50 yen to the dollar in the morning from near 82 on Tuesday.
The maneuver came after Prime Minister Naoto Kan’s victory over a member of his own party in a partywide ballot on Tuesday. Analysts had initially predicted that the win by Mr. Kan, who had been less explicit about the need for intervention than his challenger, would not likely lead to action in currency markets.
The intervention also runs counter to a recent trend among the world’s major economies to stay away from market manipulation and let markets decide the strength of their currencies.
Read the rest of the story: Japan Intervenes to Weaken the Yen – NYTimes.com.