Japan Readies for Decisive Action as Yen Hits Fresh 40-Year Low

Japan's Finance Minister Satsuki Katayama signaled the country is prepared to take decisive action in the foreign exchange market, reiterating a statement made earlier this week. This comes as the yen hit a fresh 40-year low at close to 164 per dollar on Friday.

The US Treasury Department had warned about excess volatility in the currency, and Katayama agreed that such conditions are undesirable. She also mentioned Japan's close consultation with the US, noting they share the same view on excessive foreign exchange volatility.

Despite this, some experts believe a unilateral intervention by Japan may not be effective in correcting the yen's decline, which is largely driven by dollar strength.