Japan Finance Minister Delivers Another Verbal Warning as Yen Slides

By Megumi Fujikawa

TOKYO--Japan's finance minister renewed her pledge to stop excessive yen volatility, coming as the currency hit a nearly 40-year low against the dollar and investors remain on high alert for intervention.

"We will take appropriate action on currencies at any time as needed," Satsuki Katayama said at a news conference Tuesday.

"During the recent online meeting between the Japanese and U.S. finance chiefs, we confirmed that taking decisive steps is included" as an option, she added, suggesting that the Japanese government could step in to prop up the yen.

The yen weakened beyond 162 to the dollar in morning trade, hitting levels last seen in December 1986 as expectations of higher-for-longer interest rates in the U.S. buoyed the greenback.

The yen's weakness has persisted despite recent record intervention by Japan, driven by speculation over re-widening interest-rate differentials, and safe-haven demand for the greenback amid Middle East tensions.

Higher oil prices have also boosted the need for Japanese importers to sell yen and buy dollars.

Japanese officials have repeatedly threatened to step in to curb pressure on the currency, as a weaker yen increases the cost of imports such as energy and food.

Many analysts see joint Japan-U.S. intervention as more likely to succeed in aiding the yen, as Tokyo's solo moves have so far failed to lend sustainable support.

Write to Megumi Fujikawa at megumu.fujikawa@wsj.com

(END) Dow Jones Newswires

June 29, 2026 22:01 ET (02:01 GMT)