Japan Vows to Act as Yen Hits 40-Year Low Amid Escalating Tensions

Japan's Finance Minister Satsuki Katayama has warned that Tokyo will take decisive action in the currency market if necessary, after the yen slid to a 40-year low.

The US dollar remained near a fresh 39-year high against the yen, with safe-haven buying driven by escalating tensions in West Asia outweighing Japan's warning.

The yen's weakness is a growing concern for policymakers, as it drives up import prices and household living costs. Decades of ultra-loose monetary policy and heavy government borrowing have contributed to yen weakness.

The EU has also imposed new sanctions on Russia over its war in Ukraine, creating the largest sanctions package in four years.