The yen soared to a new high for the year of 123.50 against the dollar in Tokyo on Wednesday before yen-selling intervention by the Finance Ministry and Bank of Japan brought it back down around the 125 level later in the day.
The yen's recent rise has been "too rapid," Finance Minister Masajuro Shiokawa said in a news conference. "We have taken appropriate action, and will continue to closely monitor the market and take appropriate action as necessary."
The intervention brought the yen, which reached the 123 range for the first time since December, down to near 125 at 5 p.m. The Bank of Japan last intervened in the currency markets to halt the yen's ascent Sept. 28.