The possibility of Japan intervening directly in currency markets to stem the yen’s slide can’t be ruled out, according to Takehiko Nakao, former head of foreign exchange policy at the Finance Ministry, in remarks that appeared to spark a move in the currency.
"Unilateral intervention shouldn’t be eliminated as a possibility,” said Nakao, in an interview on Bloomberg TV, while flagging that the hurdle for gaining support from abroad was high.
"Coordinated intervention is generally very difficult unless there’s a very excessive movement in the market, or a kind of crisis mode,” he said.