TOKYO—The Japanese government said it jumped into currency markets for the first time in more than six years Wednesday morning, intervening to try to stem the yen's sharp rise.
The announcement came as policy makers and Japanese business leaders have grown increasingly worried that the currency's ascent has endangered the fragile recovery of the export-led economy, risking pricing out of markets around the world. Yen worries have pushed the Nikkei Stock Average into bear market territory in recent weeks.
Tokyo stocks jumped nearly 2% Wednesday morning as traders started reporting the intervention, which was later confirmed at a press conference by Finance Minister Yoshihiko Noda. The rally was led by top exporters such as Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co., the stocks of which all rose 3% or more.
The dollar rose to almost 85 yen on the news, after having slipped earlier in the day below the 83 yen level for the first time in 15 years.
"Deflation is continuing, and we are in severe economic conditions," Mr. Noda told reporters. "Under those circumstances, recent movements [in the yen] will have adverse effects on the stability of economic and financial conditions, and we can't overlook them."
Mr. Noda made clear that more action could be coming, saying "we will continue to closely monitor movements in foreign-exchange markets and will take decisive steps, including intervention, when necessary."
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