Japan intervenes in FX market to support yen for 1st time since 1998

By Aysu Bicer

ANKARA (AA) - Japan on Thursday intervened in the foreign exchange (FX) market to shore up the battered yen for the first time since 1998.

The move sent the greenback plunging more than 2% to nearly 141.15 yen.

"We took a decisive step" as speculative moves have been observed in the currency market, the Kyodo News Agency quoted Masato Kanda, Japan's top currency diplomat, as saying.

"We will continue to watch foreign exchange moves with a high sense of urgency," Kanda added.

Earlier, the Bank of Japan on Thursday kept unchanged its ultra-low interest rates at minus 0.1%, vowing to support economic growth in the country.

“Japan is believed to have sold dollar-denominated assets it holds, such as US treasuries, to buy the yen,” according to the news agency.

The currency has already lost more than 20% of its value this year to hit a 24-year lows, as Fed interest rate hikes push the dollar higher.