By Claire West

The Japanese yen has strengthened to 15 year highs against the US dollar as the Japanese government refuses to intervene following speculators piling into the yen as a ‘haven’ currency, a safety measure against falling, risky assets.

Jeremy Cook from currency exchange broker World First comments:

“This is the currency world’s perfect storm; stock markets falling, the Federal Reserve split over how to deal with a slowdown in the American economy with a GDP reading due Friday, and a Japanese government trapped like a rabbit in the headlights.”

Japanese Finance Minister Noda has not yet commented on any potential currency intervention apart from saying he is monitoring the situation "extremely closely, with grave concern".
The strong Yen continues to put a strain on Japanese exporters as their goods or services become more expensive.