Tokyo, June 30 -- Japan's currency Yen sank to a 40-year low against the US dollar on Tuesday, triggering fears that it could prompt a quick intervention from the central bank.

The weakness in the Japanese currency comes on the back of the continued strengthening of the US dollar, as many now feel that the US Federal Reserve will raise interest rates this year.

The record low saw the Japanese currency drop below 162 for the first time, prompting a response from the Japanese government, with the finance minister reiterating that appropriate measures would be taken to minimise volatility.

"It all comes down to being ready to respond appropriately to currency moves at any time," Reuters reported Finance Minister Satsuki Katayama as saying...