Japan's FX Diplomat Prepared to Act Against One-Sided Yen Moves

Japan's top currency diplomat, Masato Kanda, has warned investors against pushing down the yen too much, stating that authorities are on standby to respond to recent "one-sided, sharp" moves in the currency. Kanda highlighted speculative trading as the main factor behind the recent declines in the yen and stated that the situation has become more tense. While he did not disclose specific actions or timing, he mentioned that authorities are prepared to respond appropriately, including the possibility of yen-buying intervention. The yen dropped to a 15-year low against the euro and a new one-year trough versus the dollar, prompting concerns about import prices and households' cost of living.