The central government maintained its view that the economy is recovering moderately in its monthly report for September, but reinstated Friday its warning about financial market volatility after a sharp decline in the yen prompted it to intervene to support the currency.
Market fluctuations require "full attention," the Cabinet Office said, underscoring a heightened sense of vigilance about the negative economic impact of volatility that has sent the yen to its lowest level in 24 years against the U.S. dollar.
The office dropped its reference to movements in financial markets in August, when yen-selling pressure eased.