Japanese yen sinks to 40-year low, keeping intervention risks in focus

The yen gained on Wednesday following a rally in Japan's equities and bets on more fiscally responsible policies after Prime Minister Takaichi's election win. Yevgen Romanenko | Moment | Getty Images The Japanese yen weakened to its lowest level against the U.S. dollar since 1986 on Tuesday, keeping investors on alert for possible intervention from Japanese authorities. The yen fell to 162.27 per dollar in early Asian trading, marking its lowest level in four decades, data from LSEG showed. Japan's Finance Minister Satsuki Katayama said Tuesday the government was ready to take appropriate action against excessive currency moves. "That includes taking decisive action, as confirmed between Japan and the U.S.," Katayama said. Chief Cabinet Secretary Minoru Kihara said at a regular press conference on Tuesday that the Japanese government will work to build an economy less vulnerable to foreign-exchange volatility while remaining prepared to intervene in currency markets if necessary. Kihara also declined to comment on the yen's current level. Stock Chart Icon Stock chart icon Nomura's North Asia chief investment officer Julia Wang said Japan could intervene in the foreign exchange market after the yen slid to a fresh multi-decade low, though she expects any impact on broader markets to be short-lived. …