Yen's rise could spark conflict over currency market intervention

Tokyo

JAPANESE authorities showed signs of growing alarm on Thursday as the yen rose briefly to near 99 to the dollar amid market fears that there is no obvious floor beneath the US currency, given what are seen now as diminishing prospects of a further hike in US interest rates this year.

The relentless climb of the yen in recent days has provoked concerns that Japan may be forced to take unilateral action to stem the rise even if this angers the United States and others among Japan's major trading partners, setting off a possible currency conflict.