Currency markets saw a massive intervention from Japan on Monday as the country sought to help control the rapid rise of the yen, according to Reuters.
The country sold roughly 7 trillion yen, worth around $89.9 billion as of Monday morning, as the Japanese government sought to contain the growing strength of its currency to help protect its heavily export-dependent economy. The current intervention reached more than 155 percent of the size of the intervention in the late summer.
Though the yen fell 2.9 percent against the U.S. dollar in response to the move, its greatest fall in three years, the currency saw a rapid recovery with investors quickly taking the opportunity to purchase it at lower prices, according to Bloomberg.
Economic uncertainty in the U.S. and the ongoing debt crisis in Europe has led to a rapid rise in the yen, with its strong domestic economy.
“It can be said that the recent appreciation of the yen is one example of the spillover effect of the sovereign debt problem in Europe into Japan through increasing risk aversion by global investors,” Masaaki Shirakawa, the governor of the Bank of Japan, told The Wall Street Journal.