Japan Readies Forex Intervention as Yen Hits 20-Month Low

Japanese Finance Minister Satsuki Katayama warned on Monday that authorities are prepared to take decisive steps to address volatility in foreign exchange markets, as the yen weakened amid global economic pressures. The remarks, delivered in Tokyo, underscore growing concerns over the currency's rapid depreciation, which has approached levels that historically prompt government intervention.

Katayama's statement followed a joint meeting on Saturday between Japanese and South Korean officials, where both nations expressed serious concern about sharp declines in the yen and the Korean won. In a joint statement, Katayama and her South Korean counterpart, Finance Minister Koo Yuncheol, affirmed that they would closely monitor exchange markets and respond to excessive volatility or disorderly movements. "Significant volatility has emerged in financial markets, including foreign exchange," Katayama told reporters after the meeting. She emphasized that the Japanese government is fully prepared to act, considering the potential impact on people's livelihoods amid surging oil prices.

The yen's slide has been driven by strong demand for the U.S. dollar, fueled by geopolitical tensions in...