Svmuu News: Although the yen has fallen to its lowest level against the U.S. dollar since 1986, Japanese Finance Minister Kazuki Katayama stated that Japan stands ready to respond appropriately to developments in the foreign exchange market, consistent with her recent remarks. Katayama said, “Most importantly, we stand ready to take appropriate action whenever necessary.” When asked whether her wording had changed, Katayama stated that her communication style had remained “consistent,” and that she had used the term “bold action” only when pressed for further comment. Markets typically interpret this statement as a threat that the Japanese government may directly intervene in the foreign exchange market, which also suggests that she may not currently be inclined to send a stronger signal of intervention to the market. So far, Katayama’s repeated verbal warnings have failed to halt the yen’s continued weakening. Additionally, Chief Cabinet Secretary Minoru Kihara stated that Japan would take appropriate action in the foreign exchange market at any time if necessary. Katayama declined to comment on specific exchange rate levels. (Jinshi)