Japan's new Finance Minister Naoto Kan has said he wants the yen to weaken. His remarks caused the currency to drop on the foreign exchange markets.
Mr Kan said he would co-operate with the Bank of Japan to steer the yen to an appropriate level, in a break from his predecessor's tolerance of a stronger currency.
The dollar rose to 92.67 yen in the wake of the remarks, from around 92.2 yen shortly before Mr Kan spoke.
While Japan has not intervened in the currency market since March 2004, allowing the yen to find its own level against the dollar, the finance minister's comments on currencies can have a big impact on trading.
Mr Kan's predecessor Hirohisa Fujii, who is stepping down for health reasons, has repeatedly said that in principle Japan should refrain from market intervention to weaken the yen and protect exporters.
