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Japan PM Softens Praise for Weak Yen as Intervention Threats Hang Over Markets

Her clarification aims to steady sentiment before the Feb. 8 snap election.

Overview

  • On Saturday, Sanae Takaichi said yen depreciation is a major opportunity for exporters and noted strong returns in the Foreign Exchange Fund Special Account.
  • She later emphasized neutrality on currency direction and a plan to build an economy more resilient to exchange-rate swings.
  • Finance Minister Satsuki Katayama has warned of potential action against excessive moves as the yen trades near 18-month lows.
  • The currency has seen sharp spikes after reports of New York Fed rate checks that traders view as a possible signal of readiness to intervene.
  • Opposition co-leader Yoshihiko Noda attacked the government over higher import costs, while long-dated Japanese government bond yields have climbed to record highs.