Japan's Finance Minister Shunichi Suzuki cautioned that authorities are maintaining round-the-clock communication with their U.S. counterparts as Tokyo remains highly vigilant against speculative moves driving the yen's depreciation.
On Thursday, Suzuki stated that past foreign exchange interventions have been effective each time, and authorities are prepared to act again if necessary.
"Regarding intervention, we have full autonomy," Suzuki emphasized. "Everyone can imagine various scenarios. Our stance is very firm."
Suzuki's remarks come as traders watch for signs of possible market intervention by Japanese authorities to support the yen, which has been hovering near 160 yen to the U.S. dollar—a level that previously triggered intervention. While a weaker yen benefits major Japanese exporters like Toyota Motor by boosting overseas earnings, it also raises import costs and reduces household purchasing power, particularly affecting pensioners and those on fixed incomes.
By Thursday evening Tokyo time, the yen traded around 159.52 against the dollar, showing slight strengthening following Suzuki's comments.
These statements follow Suzuki's bilateral meeting with U.S. Treasury Secretary Janet Yellen in Washington a week earlier, during which he expressed readiness for bold action to support the currency. This may suggest that Tokyo has received tacit U.S. approval for intervention if needed.
Suzuki noted that deputy-level officials from both countries are in "24-hour, continuous close contact." He added that authorities are prepared to take "any form of bold measures."
The finance minister also mentioned that global fiscal leaders and central bankers are closely monitoring developments in the Middle East. He further highlighted widespread speculative activity in crude oil futures markets.
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