A senior lawmaker in the country's ruling coalition party said on Friday that Japan would decide whether to intervene to stem any excess yen weakness, as the Japanese currency slumped to a 32 year low against the dollar.
Keiichi Ishii, secretary general of the Komeito party, a ally of the ruling Liberal Democratic Party, made a comment hours after Japanese Finance Minister Shunichi Suzuki reiterated the government's readiness to take appropriate action at the Group of 20 financial leaders' meeting in Washington.
The yen fell overnight to a 32 year low, due to the news that consumer inflation was 8.2 per cent, bolstering expectations that the Federal Reserve will keep on raising rates for longer, further hurting the value of Japan's currency.
Ishii said that Japan needs to monitor the yen, which is historically weak, with a sense of urgency.
Ishii told a news conference that excess forex moves would have a bad impact on the economy, whether it's a weak yen or a strong yen.