Special Report: Global Financial Crisis　

    TOKYO, Dec. 17 (Xinhua) -- Japan hailed the drastic interest rate cut by the U.S. Federal Reserve, while hints at intervention in yen's surge against the dollar.

    Prime Minister Taro Aso told reporters Wednesday that Japan hopes the rate cut will bring about a positive effect. Also on the day, yen climbed to upper-88 yen zone against the dollar and Finance Minister Shoichi Nakagawa said Japan is ready to "take every necessary move to tackle the fluctuation in foreign exchange market."

    A rising yen caps Japanese exporters profit and therefore affects the Japanese economy, which relies heavily on exports.

    Japan last conducted a currency market intervention via the central bank on March 17, 2004.

    The dollar traded mostly in the mid to upper 88 yen zone Wednesday in Tokyo, down from the lower 90 yen level in local trading late Tuesday, as investors dumped the U.S. currency following the Fed's drastic interest rate cut.

U.S. Fed cuts key interest rate to record low to save economy from deep recession

Graphics shows the U.S. Federal Reserve deciding to cut a key interest rate to the lowest level on record to prevent the country's ailing economy from slipping further into deep recession on Dec. 16, 2008. (Xinhua/Zhang Liyun) Photo Gallery>>>

WASHINGTON, Dec. 16 (Xinhua) -- The U.S. Federal Reserve decided Tuesday to cut a key interest rate to the lowest level on record to prevent the country's ailing economy from slipping further into deep recession.

The Tuesday's action, which slashed the rate to zero to 0.25 percent, should be the last as the central bank might have no room for further cut, according to analysts. That is down from the 1 percent target rate in effect since the last meeting in October.  Full story