The yen weakened to around ¥162 to the dollar, its lowest level in approximately 39 and a half years. Minister Katayama said, "We will respond appropriately at any time."
In the foreign exchange market, the yen weakened to the low ¥162 range against the dollar, its weakest level in approximately 39 and a half years. The market has been driven by attention to the US-Japan interest rate differential against a backdrop of rising expectations for a US rate hike.
Some market participants believe the move could influence decisions on foreign exchange intervention and monetary policy in Japan, focusing investor attention on developments ahead.
Minister Katayama's remarks have been interpreted as indicating the policy response if exchange rates were to move sharply.