Japan conducts solo yen-selling intervention

Japan conducted unilateral yen-selling intervention for the first time in about three months Monday morning, bringing the U.S. dollar temporarily to the upper 78 yen range in Tokyo. Japanese Finance Minister Jun Azumi confirmed the intervention, which he said was conducted at 10:25 a.m. local time by the Bank of Japan. Azumi declined to disclose the size of the intervention, but said Tokyo will continue with such measures until it is "satisfied ". The dollar, which had dropped to a fresh postwar low of 75.32 yen in Oceanian trading earlier in the day, surged by about 3 yen from the upper 75 yen range after the intervention to near the 79 yen line. A strong yen is hazardous to Japanese exporters, a key drive to the world's third largest economy. Industrial insiders have warned of a "hollowing-out" of production in the country which has been plagued by the March earthquake and tsunami. At 11 a.m. Monday, the dollar was trading in the lower 78 yen range in Tokyo.