Japan is selling yen to stem a rise that is threatening economic recovery.

Finance Minister Yoshihiko Noda today confirmed the intervention in a news conference, saying Tokyo was also discussing with authorities overseas. He, however, indicated that Japan acted alone.

He declined to say whether the intervention, the first since March 2004, was to buy US dollars for yen, but two traders said the Bank of Japan appeared to have bought US dollars around 83 yen.

"We will take decisive steps if necessary, including intervention, while continuing to closely watch currency market moves from now on," Mr Noda said.

The greenback had hit a 15-year-low at 82.87 yen earlier in the day but was at 84.78 yen by noon.

The government of Prime Minister Naoto Kan, who was re-elected ruling party leader on Tuesday, has been trying to talk down the yen but until Wednesday had stopped short of intervening in the markets, apparently worried that acting without Group of Seven partners would not be very effective.

The Australian dollar jumped to 78.91 yen on Wednesday, compared with yesterday's close of 77.78 yen after traders spotted the Bank of Japan selling yen in the market in an effort to restrain its export-sapping strength.

Source: Reuters