Currency exchange high for Japanese yen

The Japanese yen has reached a 15-year high against the US dollar today (August 24th).

Trading at 85.54 yen, the US dollar reached the lowest level recorded since 1995.

Furthermore, the yen rose to a nine-year high against the euro.

The high rates of currency exchange prompted concern among exporters in Japan.

However, speaking at an emergency meeting, the country's finance minister Yoshihiko Noda said that the situation was being monitored "extremely closely, with grave concern".

Paul Robson, currency strategist at RBS, told the Evening Standard: "The market will test the Japanese authorities to intervene and unless they come up with something more definitive, dollar/yen is headed towards 80.

"This will really hurt the Japanese economy since both the US and Asian economies are also slowing down."

The country's government was last forced to intervene in its currency exchange rates in March 2004 and pressure is mounting for similar action to be taken this year.

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Posted by Sarah Pitton