Finance ministers from the G7 group voted in favour of an intervention to curve the rise of the Japanese yen. The group, which includes France, Germany, Russia, China, Japan, the UK and the US, had not intervened in currency markets since the year 2000..

Earlier this week, the yen had hit a record-high exchange rate to the dollar since the end of the Second World War, as a consequence of the disaster which hit the island last Friday. Japanese financial markets had also been heavily rocked, as the Nikkei 225 index dropped by 16 per, before a slight recovery on Wednesday.

These events motivated a double intervention by the G7. The group issued a statement explaining its objectives are to curve"excess volatility and disorderly movements in exchange rates".

Analysts claim the G7 decisions will likely soothe markets, however, they doubt it can have a long-lasting effect on the yen's worrisome rise. Economists also fear the implications of the disaster could affect the world economy, as some of Japan's main manufacturers, such as Toyota, remain at a standstill.

News of the the group's plan had an instantaneous effect on the Japanese stock and led to the Nikkei index closing with a 2.7 per cent increase, whilst also affecting European stock markets positively.Meanwhile, the Bank of Japan injected an extra 3 trillion yen (£37bn) in order to further soothe its financial markets.