As illustrated, it can be said that the recent appreciation of the yen is one example of the spillover effect of the sovereign debt problem in Europe into Japan through the increasing risk aversion by global investors. In this regard, the Ministry of Finance intervened to the foreign exchange market today.
The Bank strongly expects that such an action will contribute to the stable price formation in the market. 2  BIS central bankers’ speeches  The sovereign debt problem in Europe was triggered by the fiscal deficits, but it has started to affect economic activity in Europe through the financial system.