Japanese authorities may continue intervening in the foreign exchange market to curb the yen's rapid depreciation after gaining fresh backing from the US Treasury Secretary, whom analysts believe is growing more worried about rising interest rates.
This assessment comes after Japan took strong intervention measures in currency markets in recent weeks. Government sources in Tokyo indicate that Japan is ready to implement further steps if necessary.
The moves come as the yen hits multi-decade lows against the US dollar, putting severe pressure on Japan's import-dependent economy.
According to experts, Washington's lack of strong opposition to Japan's interventions marks a policy shift. The US Treasury Secretary is seen as taking a more pragmatic view of the weak yen's impact on the global economy.
If it intervenes again, Japan will face challenges related to its foreign exchange reserves, but officials say they are prepared with necessary measures. Markets are closely watching the next decisions by the Bank of Japan and the Ministry of Finance.
