The yen surged to an 18-month high against the dollar Nov. 12 while the benchmark Nikkei index briefly dipped below 15,000 as fears mounted that ballooning subprime loan losses will trigger a recession in the United States.

The yen touched the upper 109 range against the dollar Nov. 12, the highest levels since May 2006.

The 225-issue Nikkei stock average shed 386.33 points, or 2.48 percent, to close at 15,197.09, its lowest close since Aug. 7, 2006.

Analysts say a weak dollar has been a trend for some time, but Chief Cabinet Secretary Nobutaka Machimura's remark Nov. 12 that the government has no plans to carry out market intervention further lifted the yen. Machimura also said a stronger yen may hurt Japanese exporters, but it is "a good thing" for Japan because it means the value of Japan is higher.