Japanese government intervenes in market to weaken yen

Japanese government intervenes in market to weaken yen

Japan's move was unilateral, unlike an intervention in March, which was backed by the G7 group of developed nations.

The government has repeatedly warned that the strong yen threatens growth and recovery from a deadly earthquake and tsunami.

The yen fell against the US dollar on the news, though analysts questioned its long-term impact.

Since the last intervention, the yen had gained about 5% against the US dollar, and over the last 12 months it was almost 12% stronger.

"Intervention doesn't generally have a long-term impact on the value of the yen," said Naomi Fink of Jefferies. "Its aim is to send a warning to speculators and to prevent markets from becoming disorderly."

The dollar was recently trading at close to 78.47 against the yen, up from 77.

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