The Canadian dollar plummeted more than a third of a cent against its U.S. benchmark Wednesday, prompting the Bank of England, then the Bank of Canada to enter currency markets to temper its fall.

The dollar fell to 70.23 U.S. cents in early morning trading from Tuesday’s close of 70.60 U.S. cents following the failure of Yamaichi Securities Co. and Tokuyo City Bank. Concern that Japan will step up sales of Canadian securities and the Canadian dollars they’re denominated in led traders to sell their holdings in advance of such action.

The decline prompted the Bank of England to enter currency markets several times overnight on the Bank of Canada’s behalf, buying Canadian dollars at 70.27 U.S. cents (US$1.4230) and 70.23 U.S. cents with its foreign reserves. The Bank of Canada took over in early North American trading, buying Canadian dollars at 70.22 U.S. cents.

The dollar’s decline came just one day after the Bank of Canada raised its benchmark interest rate by 25 basis points to 4 percent to help bolster the currency’s value.