TOKYO - Japan will take "decisive" action if there are speculative moves in the currency market, Finance Minister Satsuki Katayama said Friday, after the yen weakened to the upper 161 zone against the U.S. dollar, nearing its lowest level in more than 39 years.
"There is no change at all in our stance to take decisive action" when needed, Katayama told reporters, amid expectations that the Japanese authorities could intervene in the currency market to stem the yen's depreciation.
The yen fell as far as 161.81 against the dollar overnight in New York, its lowest level since July 2024, as the U.S. currency was bought after the Federal Reserve indicated its readiness to raise interest rates within a year due to inflation concerns.
A weaker yen drives up the cost of imported energy in resource-scarce Japan.
Katayama's warning came after Finance Ministry data covering the period from April 28 to May 27 showed Japanese authorities spent a record 11.73 trillion yen ($73 billion) on currency market interventions.
The interventions helped the yen to strengthen to around 155 against the dollar, but it lost ground as the U.S. currency attracted buying in a flight to safety amid the Middle East conflict.
