The currency has spiked sharply higher in the past couple of weeks due to its status as a safe haven investment in times of trouble.
On Thursday, the dollar was down a further 1.7 percent at 111.42 yen. At the end of January, it was almost 10 yen higher. For major currencies, that`s a big move.
Lee Hardman, currency strategist at Bank of Tokyo-Mitsubishi UFJ, says the yen`s rise is fuelling speculation that the Japanese authorities could intervene directly to dampen volatility. That could involve the Bank of Japan buying dollars and selling yen.
For Japan`s economic policymakers, the higher yen is problematic as it makes Japanese exports more expensive internationally. It also reduces the cost of imports, keeping a lid on inflation, which Japan has been desperately trying to foster for years.
Yen rises sharply, stoking talk of intervention
11 February 2016
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Stocks and oil may be getting the most attention in global markets, but there are big moves elsewhere, too
