The yen rises after Japan intervened to support the currency for the first time since 1998

The Japanese yen rose sharply Thursday, September 22, after authorities intervened in the foreign exchange market for the first time since 1998 to prop up the tumbling currency.

The dollar fell to 140.31 yen, and fell in the last trading 1.2% to 142.37 in highly volatile transactions. The yen also rose against the euro, the Australian dollar and the pound sterling.

“We have taken decisive measures (in the exchange market),” Japanese Deputy Finance Minister for International Affairs Masato Kanda told reporters.

The first Japanese intervention in the currency market to support the yen since 1998 came in the wake of the central bank’s decision to keep interest rates very low, which was driving the currency lower.

Even after Thursday’s moves, the Dollar is still up 23.4% against the Yen this year.

On a very busy day in the markets, the dollar reached a multi-year high earlier Thursday after the US Federal Reserve surprised markets with its hawkish interest rate expectations.

The dollar index, which measures the performance of the US currency against a basket of six other currencies, rose earlier to 111.81, for the first time since mid-2002.

The euro fell to a new low in 20 years at 0.9807 against the dollar.

The British pound fell to a new record in 37 years at 1.1213 against the dollar, although both of them made up for some losses in trading in London.