The Japanese Yen strengthened to a 14-year high against the U.S Dollar, rising past 85.00 to the greenback on speculation renewed risk aversion will enhance the allure of the Japanese currency as a refuge.

The Yen climbed as high as 85.83 per Dollar, the strongest since July 1995, before trading at 85.20 from 86.59 yesterday. The currency advanced to 128.87 per EUR from 130.03, after hitting 126.91, the highest since April 29.

Japan's currency did pare some of its earlier gains after Japan's Finance Minister told reporters in Tokyo he will contact authorities in the U.S. and Europe about currencies if necessary. Shizuka Kamei, Japan's financial services minister, also urged an international response to halt the rise in the country's currency. The market showed paid attention to the warning from the government today and bought back the USD. However the impact of verbal intervention may not last long unless the government takes actual action analysts said.