8 Aug 2011

Japan to intervene in currency market again

9:09 am on 8 August 2011

Japan has warned it will intervene again in the currency market to try to curb the surging yen.

The US dollar slumped against the Japanese currency last week. The ABC reports the strengthening yen is causing concern for Japan's export-led economy.

The Bank of Japan intervened in the foreign exchange market last week, selling an unspecified amount of yen.

But with predictions the global financial situation will worsen, there are fears the yen will rise once again.

The Japanese government says it is not afraid of another currency intervention to try to protect the country's fragile economy.