Prime Minister Shinzo Abe said Thursday he was ready to respond to excessive currency moves if needed, adding that he may raise the issue of foreign exchange volatility at a meeting of Group of Seven leaders in Japan later this month.
With the yen having strengthened about 12 percent this year against the dollar, Abe told reporters in London that "abrupt" change is undesirable. "The exchange rate must be stabilized," he said, adding that Japan would "carefully watch these movements and, as necessary, we would need to respond."
The yen's appreciation has led to speculation that the government may consider foreign exchange intervention to support exporters that may suffer from a rise in the Japanese currency. The yen weakened about 0.5 percent to 107. 33 as of 3:48 p.m. London time after Abe began a press conference in the U.K. capital following a meeting with Prime Minister David Cameron.