Japanese authorities on Friday warned of intervention in the currency market after sharp swings in the yen overnight, which was triggered by softer-than-expected U.S. inflation data and a broad dollar sell-off.
Finance Minister Shunichi Suzuki told reporters authorities were closely watching market moves with a "high sense of urgency" and that they were ready to take action, if needed, echoing earlier remarks by top financial diplomat Masato Kanda.
The comments came after weaker-than-expected U.S. consumer price data lowered market expectations for aggressive Federal Reserve interest rate hikes, sending the dollar tumbling by ¥4 overnight against the Japanese currency.