Japan, US will intervene if yen falls further: Finance Minister

Japan and the United States stand ready to intervene in currency markets to curb the yen's rapid depreciation, signaling a potential shift in their coordinated approach to currency stability. Finance Minister Shunichi Suzuki issued a stern warning, stating that both nations "will not hesitate to take decisive action" if the yen's slide continues unabated.

Suzuki acknowledged the significant volatility in the foreign exchange market, particularly the yen's sharp decline against the dollar, which has reached levels not seen in decades. This rapid depreciation has become a major concern for Japanese policymakers, who fear it could negatively impact the economy by increasing import costs and potentially fueling inflation.

The statement reflects a heightened sense of urgency from Tokyo, which has been increasingly vocal about the yen's weakness. While Japan has historically been cautious about direct market intervention, the current situation appears to have prompted a more assertive stance, with the backing of its key ally, the United States. The coordinated warning aims to deter further speculative attacks on the yen and restore a degree of stability to the currency markets.