Yen Reaches 15-Year High Against the U.S. Dollar

The Japanese yen hit a 15-year high against the U.S dollar on Wednesday after the Federal Reserve lowered its assessment of the U.S. economy and said it will reinvest some bond holdings.

The yen has strengthened 11% against the dollar since May, raising the possibility that Japanese authorities may intervene to weaken the currency, The Wall Street Journal reported. The yen generally strengthens during periods of economic uncertainty because investors view it as a safe haven.

A strong yen makes Japanese exports less competitive, hurting the country's economy.

When asked about the value of the currency, Finance Minister Yoshihiko Noda said that he was "watching this development extremely closely."

Japanese authorities have not sold yen since 2004. Selling yen weakens the currency.