Japan edges closer to intervention in yen

TOKYO: Japan's government and central bank said on Friday they were concerned by recent sharp falls in the yen, the strongest warning to date that Tokyo could intervene to support the currency as it plumbs 20-year lows, Reuters reported.

The statement underscores growing concern among policymakers over the damage that sharp yen depreciation could inflict on Japan's fragile economy by hurting businesses and consumers. But many market players doubt that G7 member Japan will step in soon to directly prop up the yen, a diplomatically fraught and potentially costly course of action that last occurred 20 years ago.

After a meeting with his Bank of Japan counterpart, top currency diplomat Masato Kanda told reporters that Tokyo will "respond flexibly with all options on the table."