Japan's finance minister said Tokyo was ready to take "resolute measures" as the yen neared its 40-year low against the US dollar, according to RTHK.
Finance Minister Satsuki Katayama said Japan and the United States were in firm agreement to act whenever necessary, after talks with US Treasury Secretary Scott Bessent that were confirmed by the Japanese government. The remarks suggested Japan could intervene again to support the yen after spending more than US$70 billion last month.
Reports about the conversation with Bessent on Monday helped the yen recover from 161.93 per dollar, close to 161.96 last seen in December 1996. The yen was around 161.60 in Tuesday afternoon trade in Tokyo.
The yen has been sliding for several years and has faced renewed pressure from the Middle East war and the gap between US and Japanese interest rates. MUFG's Michael Wan said a durable shift would require fundamentals such as low real interest rates versus the US to change, adding the Bank of Japan likely needs to signal a more hawkish path after raising rates last week to a 31-year high.
The report said further BOJ rate increases could face resistance from Japanese Prime Minister Sanae Takaichi's government, which is concerned about hurting growth with higher borrowing costs.
Japan Signals Readiness for 'Resolute Measures' as Yen Nears 40-Year Low
2026-06-23 04:07:19
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