--- title: "The yen approaches a 40-year low! Japan's Finance Minister reiterates \"bold action\" and issues intervention warnings to speculative trading" type: "News" locale: "en" url: "https://longbridge.com/en/news/290261359.md" description: "Japan's Finance Minister Katsunobu Kato stated that the yen exchange rate is approaching a 40-year low, and the government can take \"bold actions\" (i.e., foreign exchange intervention) against excessive speculation. This move aims to send a warning to the market about intervention. Despite the central bank's interest rate hikes and the G7 reaffirming its commitment to exchange rates, the yen remains under pressure from the strengthening dollar, and if it falls below 161.95, it will hit a new low since 1986" datetime: "2026-06-19T02:21:12.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/290261359.md) - [en](https://longbridge.com/en/news/290261359.md) - [zh-HK](https://longbridge.com/zh-HK/news/290261359.md) --- # The yen approaches a 40-year low! Japan's Finance Minister reiterates "bold action" and issues intervention warnings to speculative trading According to the Zhitong Finance APP, Japanese Finance Minister Shunichi Suzuki stated on Friday that the government could take bold actions to address speculative behavior as the yen exchange rate approaches its lowest level in 40 years. "We can take bold actions against excessive speculation in the foreign exchange market," Suzuki told reporters at a press conference on Friday. Suzuki has previously used the term "bold actions" multiple times, which refers to intervention in the foreign exchange market and is often interpreted as a final warning to traders. She stated that the Ministry of Finance's stance on currency issues has not changed. Suzuki's remarks somewhat supported the yen exchange rate, bringing it close to 161 yen per dollar, but this level is still below the price at which Japanese authorities intervened to support the yen in late April. The next key level for the yen is 161.95; if it falls below this level, it will hit the lowest point since December 1986. The decline of the yen coincides with a significant strengthening of the dollar, as market expectations suggest that the Federal Reserve will begin raising interest rates in the coming months, resulting in the largest two-day gain for the dollar in three months. Earlier this week, the Bank of Japan raised interest rates to the highest level since 1995, but this move had little support for the yen. Bank of Japan Deputy Governor Masayoshi Amamiya stated in Congress on Friday that exchange rates remain an important factor affecting the economy and prices, adding that the Bank of Japan will closely monitor the impact of exchange rates. Suzuki mentioned that currency issues were also discussed at the G7 summit held in France this week. The G7 leaders stated in a joint declaration that they "reaffirmed the existing G7 exchange rate commitments." Japan intervened in the exchange rate market during the month ending May 27, utilizing a record 11.73 trillion yen (approximately 72.8 billion USD). This operation was conducted after the yen to dollar exchange rate fell to 160.72, with the yen briefly rebounding to 155 during the Golden Week holiday in early May. To raise funds for intervention, Japan may have sold foreign securities, including U.S. Treasury bonds. Given the growing concerns about the stability of the U.S. Treasury market, this move may attract close attention from Washington. The U.S. stock market was closed on Friday due to the holiday ### Related Stocks - [FXY.US](https://longbridge.com/en/quote/FXY.US.md) - [YCL.US](https://longbridge.com/en/quote/YCL.US.md) - [YCS.US](https://longbridge.com/en/quote/YCS.US.md) ## Related News & Research - [Yen at brink of 40-year low puts markets on intervention watch](https://longbridge.com/en/news/290256762.md) - [TABLE-Foreign investors net sellers of Japan shares for last week](https://longbridge.com/en/news/290117066.md) - [Will a 2026 Fed interest rate increase help or hurt retirees?](https://longbridge.com/en/news/289963003.md) - [Trump on arrival at G7 meeting: 'I'm the boss'](https://longbridge.com/en/news/290090013.md) - [Analysis:Why an Iran peace deal won't pull the yen back from the brink](https://longbridge.com/en/news/289739955.md)