Stronger risk appetite, intervention talk pull yen down

London

THE yen hit a 2-1/2-week low on Tuesday as a move up in oil prices boosted risk appetite, and as investors worried that after giving several warnings, Japanese officials would intervene to weaken the yen.

The Japanese currency has fallen around 3.5 per cent against the dollar since hitting an 18-month high two weeks ago, with policymakers stepping up talk that they are watching the yen's movements and will step in to weaken it if necessary.