Japan ready to respond to yen moves at any time, finance minister says

Japan stands ready to take decisive action against excessive currency fluctuations, including intervening in the market, according to Finance Minister Satsuki Katayama. Her remarks followed the yen's sharp depreciation, which recently pushed it to a 40-year low against the U.S. dollar.

"This includes taking decisive action, as confirmed between Japan and the U.S.," Katayama told reporters on Tuesday, responding to questions about the yen's slide. The statement signals a potential shift towards direct market intervention to curb the currency's decline.

In a separate press conference, Chief Cabinet Secretary Minoru Kihara echoed the government's readiness to act. He added that Japan is committed to building an economic framework that can withstand foreign exchange volatility. However, both Kihara and Katayama declined to comment on current foreign exchange levels, a common practice for officials when discussing currency markets.

Despite these assurances, the yen continued to weaken after Kihara's comments, with the dollar briefly surpassing 162 yen for the first time in four decades. The prolonged weakness of the yen has raised concerns about its impact on Japan's economy, particularly its import costs and inflation.

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This includes taking decisive action, as confirmed between Japan and the U.S.