The sharp fall of the yen in the Asian session has triggered warnings from the Japanese government that is ready to react if necessary.
The warning, which echoed a joint statement between the government and the central bank issued last Friday, was made after the yen fell to a new 20 -year low against the US dollar at 135.00.
Chief Cabinet Secretary Hirokazu Matsuno told a news conference on Monday that currency rates need to move stably to reflect fundamentals.
"However, the sharp decline in the yen has made us worried," Matsuno said.
He added that they were ready to respond accordingly as needed, while communicating closely with the currency authorities in each country.
He, however, declined to comment on whether Japan would intervene to curb the yen's sharp fall.
U.S. inflation once again shocked the market with an increase of 8.6% in May, exceeding expectations for an increase of just 8.3%.
The surge has sparked expectations for the Federal Reserve (Fed) to act more ‘violently’ in raising interest rates by raising more than 50 basis points.
The expectation not only spurred the U.S. dollar’s surge, but also drove the rise in 10 -year U.S. bond yields to a nearly 3 -year high of 3.18%.
The Bank of Japan (BOJ) will hold a policy meeting on Friday which is expected to continue to lag behind other major central banks by maintaining a very loose monetary policy.
