The value of Japan's exports fell 3.4 percent in the first 20 days of July, according to preliminary data released by the Ministry of Finance on Friday.

The ministry's figures showed the value of exports in the recording period totaled 3,423.2 billion yen (43.31 billion U.S. dollars), down from 3,554.8 billion yen booked in the same period a year earlier, as the nation continues to recover to optimum industrial output levels following the adverse impact of the March 11 quake and tsunami still hampering factory output to a degree, although disruption to key domestic supply chains is improving.

The government's provisional data for July also showed the balance of trade in goods marked a negative surplus of 31.7 billion yen, with the value of imports rising 12.7 percent, on a customs cleared basis and not adjusted for seasonal factors, and that of exports moving into negative territory, the ministry's data showed.

The slump in exports was due to a persistently strong yen versus the U.S. dollar and other major currencies dampening the outlook for Japanese export-related products in overseas markets, as Japan's key economic sector relies heavily on a weaker yen to boost the competitiveness of its goods and services in foreign markets and ensure profits made overseas aren't diminished when repatriated.

Due to the damaging effect the yen's recent surge has had on Japan's exporters, the government unilaterally intervened in the currency market on Thursday in a massive yen-selling operation, which helped the yen retreat more than 3 percent against the U.S. dollar and weaken against all other major counterparts.

The move, according to leading economists here, helped ease recent pressure on exporters brought on by a persistently strong yen and marked the first time Japan intervened into currency market since joint yen sales on March 18 by the Group of Seven nations to cool the yen's rise following the twin disasters.

Japanese Finance Minister Yoshihiko Noda said Friday that he would continue closely watching yen moves, in a sign Japan may well be primed to make another foray into currency market to further cool the yen if necessary.

Thursday's intervention was to the tune of a record 4 trillion yen (50.6 billion U.S. dollars) and economists here are eagerly awaiting signs of further monetary mediating.

"There's no change to our basic stance that we want to monitor markets closely. It's better to wait for a little while before judging the impact of intervention," Finance Minister Yoshihiko Noda told a news conference just before the stock markets opened early on Friday morning.