Japan’s Yen climbs despite Government's new measures

Despite the Japanese government's steps announced this week to contain the currency rise, the yen continued to rise towards a record high against the dollar.

Hours after ratings agency Moody's Investors Service downgraded Japan's sovereign debt rating by one notch, citing large budget deficits, the government announced a $100-billion credit facility to help the Japanese economy ride out a spike in the yen in recent weeks amid the global market turmoil, which has battered Japan's export-led economy.(See: Japan announces $100-bn credit facility to help companies combat rising yen)

This was the latest among the Japanese government's measures aimed at reining in the rising the yen.

But the yen firmed back after the $100-bn credit facility announcement to combat the yen's rise, which threatens to undermine the recovery of firms following the twin disasters.

The yen rose as market players were unimpressed with Japan's ministry of finance to stem gains in its currency, which has risen to record levels as market players seek refuge from global turmoil of eurozone debt crisis and US economy slowing.

In Tokyo's afternoon trade the dollar fetched 76.64 yen, down from 76.77 yen in morning trade and 76.68 in New York late Tuesday.