Finance Minister Yoshihiko Noda announced that a U.S.$100 billion fund is being created, to help Japanese companies to use yen to buy foreign money, and take over foreign companies.

Noda says the fund is a response to the crashing U.S. dollar, which is forcing up the value of the Japanese yen.  The more the yen is worth, the more expensive it makes Japanese exports.  Already Japan has seen the effect, reduced sales to other countries.

The fund will loan money to Japanese companies, and investors, who will then use it to buy foreign money, and foreign companies.  It’s hoped that action will bring down the value of the yen.

The Japanese government will counter speculators from abusing the fund, by requiring daily reports of financial transactions.