By: Barbara Zigah

Under pressure from Japanese exporters, the U.S. Dollar slipped near to a record low versus the Japanese Yen earlier in a very choppy Asian trading session, but was able to pare losses more recently. Traders are expecting an intervention by the Bank of Japan at any time now, and are trading cautiously as a result.

As reported at 2:31 p.m. (JST), the U.S. Dollar fell to a low of 76.11 Japanese Yen on the EBS trading platform, closing in on the record low 75.941 Japanese Yen struck in August. Shortly afterward, though, the U.S. Dollar rebounded to the day’s high of 76.86 Japanese Yen before settling back currently to 76.3450 Japanese Yen.

So far in this quarter, the U.S. Dollar has lost some 5.2% of its value against the Yen, the largest quarterly decline since the 5.6% drop in the 3rd quarter of 2010. The Japanese currency is considered a safe haven in the midst of global economic turmoil, and it, along with the Swiss France (pre-pegging) are regularly and consistently pushed higher, to the detriment of their respective economies. One forex analyst in Singapore says that with risk appetite so fragile, investors will continue to move into the Yen, though he acknowledges cautiously for now, with intervention worries looming.