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The yen soared to a record high of 76.25 against the dollar in Sydney early Thursday as Japan struggled to contain a postearthquake nuclear crisis. In Tokyo later in the day, it bounced back to ¥79.

The dollar rebounded in Tokyo on the perception it had been oversold in overseas markets. In Sydney, the yen rose to a postwar record high on speculation that Japanese companies will sell dollar-quoted assets to finance rehabilitation efforts in Japan following the mega-quake that hit the Tohoku region March 11.

The yen was trading at 79.21-24 at 5 p.m. Thursday in Tokyo, after soaring to 76.53 late Wednesday in New York — far above the previous all-time high of 79.75 set in April 1995.

“Some foreign investors are withdrawing their money from Japan, so demand for yen is not that strong,” said Minori Uchida, a senior analyst with Bank of Tokyo-Mitsubishi UFJ.

Finance Minister Yoshihiko Noda did not comment on market intervention to prop up the dollar in response to the latest development in the currency market.

But market intervention is possible if the situation at the Fukushima plants worsens further, dealers say.

“Given the depth of concerns about the nuclear plants in the West, it is possible that the Group of Seven industrialized countries will issue a joint statement or intervene in currency markets (to avert the yen’s further rise if the nuclear crisis worsens),” said Hideki Hayashi, global economist with Mizuho Securities Co.

The G7 financial chiefs plan to hold phone talks Friday morning to discuss the currency market, according to Noda. [The Japan Times]

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