Japan Warns Speculators on Yen Weakness

Japanese Finance Minister Katsunobu Kato has reiterated Tokyo's warning against excessive foreign exchange speculation, signaling the government's readiness to intervene and stabilize the weakening yen, as reported by Reuters.

Speaking at a regular news conference, Kato stated, "There is no change to our stance," when questioned about the yen's persistent weakness. "I would repeat what I've said. It's important for currencies to move in a stable manner reflecting fundamentals and the government has been alarmed by foreign exchange moves including those driven by speculators. We'll take appropriate action against excessive moves."

Kato's comments echo last week's pronouncements, where he explicitly described the currency market situation as alarming. The yen currently hovers near a five-month low, trading at over 157 per dollar, representing a 4.7% decline this month alone. This level of depreciation is prompting speculation that Japanese authorities may intervene to support the currency.

"We'll take appropriate action against excessive moves," Kato added, underscoring the government's commitment to stabilizing the yen.