Japan Ready for Decisive Currency Action as Yen Weakens

Japan’s Finance Minister Satsuki Katayama said on Tuesday that the government was prepared to take decisive action in the currency market as the yen fell against the dollar.

Her remarks signaled a readiness to respond to currency movements, but did not amount to an announcement that action had been taken.

The yen’s decline against the US currency provided the backdrop to the warning. A weaker yen can raise the cost of imports for Japan by making dollar-priced goods more expensive in local currency terms.

Katayama’s statement left open what measures the government might use and when it might act. No specific exchange-rate threshold was given.