Japan’s finance minister issued his strongest warning to date about the weakness of the yen as the currency fell to a 34-year low against the dollar, saying authorities could take “decisive steps”, language previously used before intervention.
Shunichi Suzuki last used the words “decisive steps” in autumn 2022 when Japan last intervened in the market to stem the yen weakness.
Suzuki made the remarks on Tuesday shortly after the dollar spiked on strong US data, nudging the Japanese yen to a 34-year low and into the zone that drew official market intervention in 2022.
Yen hits 34-year low ahead of key US inflation test
The yen traded at 151.97 per dollar in the Asia session, down about 0.2% and weaker than 151.94 where Japanese authorities stepped in during October 2022 to buy the currency.
It hit the weakest level since the middle of 1990, around the time Japan’s asset bubble burst.
Suzuki said the government is closely watching market moves with a high sense of urgency following the yen’s fall.
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