Japan said on Tuesday it was ready to take "appropriate action" after the yen fell to its weakest level against the US dollar in 40 years, reports AFP.
Finance Minister Satsuki Katayama said authorities would "take appropriate action at any time as necessary" as the currency came under renewed pressure from the Middle East conflict and the gap between US and Japanese interest rates.
The comments signalled that Japan remained prepared to intervene in currency markets after spending more than $70 billion last month to support the yen.
The currency weakened beyond 161.96 per US dollar in London trading on Monday, its lowest level since 1986. It later traded around 162.17 on Tuesday after briefly touching a new low.
A weaker yen has increased import costs for resource-poor Japan, particularly for dollar-priced oil, prompting Prime Minister Sanae Takaichi's government to maintain fuel and energy subsidies.
At the same time, the weaker currency has boosted tourism by making Japan a cheaper destination for foreign visitors.
The Bank of Japan recently raised interest rates to their highest level in 31 years, but expectations that the US Federal Reserve could also raise rates have kept pressure on the yen. Further rate increases by the Bank of Japan may also face resistance from the government over concerns about economic growth.
Bd-pratidin English/ Jisan
