Japan’s finance minister Satsuki Katayama warned that authorities were ready to take "appropriate and bold action" after the yen slid past ¥163 against the dollar, a level not seen in almost four decades. Her remarks, delivered in a press conference, were largely ignored by markets, which continued to push the currency lower.

The plunge follows a flare‑up in the Iran war, which has pushed oil prices higher and raised fears that the U.S. Federal Reserve may lift rates sooner. Japan’s trade deficit widened to $2.5bn in June, more than double analysts’ forecasts, underscoring the country’s vulnerability to energy and food imports.

After a brief intervention of ¥11.73tn in late April, the yen rebounded only to fall again, reaching the ¥162 level that had previously prompted action. Since then, no intervention has occurred, prompting speculation that the new threshold may lie above the former line.

Atsushi Mimura, the vice‑minister of finance for international affairs, has shifted tactics, keeping markets uncertain rather than issuing a final warning. Nomura FX analyst Yujiro Goto notes that the market is now testing the authorities’ tolerance at ¥163, hinting that the intervention point is higher than before.