Japan warns of bold action on yen

Japan will take bold action to stem currency volatility if needed, issuing its clearest warning yet of possible intervention after the yen touched a 32-year low.

Excessive currency moves have negative effects on the economy and the country is ready to take action if they continue, chief currency official Masato Kanda said in Washington.

"We will take appropriate steps against excessive moves, especially if that's led by speculative trading," Kanda said. "If we judge that currency moves are excessive and if that takes place repeatedly, we are always prepared to take bold action."

Kanda's warning comes after Finance Minister Shunichi Suzuki said Japan is deeply concerned about rapidly increasing volatility in FX markets. The yen has "seen unprecedentedly sharp and one-sided movements, with speculative activities behind such moves," he said.

Previously, Japanese Prime Minister Fumio Kishida said he would strengthen the economy in a way that makes the most of the weak yen, including encouraging the building of chip and battery factories as well as pushing farm exports.

He also said he would aim for 5 trillion yen (HK$260 billion) in consumption by inbound tourists, with the return of visa-free travel and individual travel from October 11.