The Japanese yen nears a 40-year low! Japan's Finance Minister once again proposes "bold action" and issues a warning against speculation trading.

Japanese Finance Minister Kaoru Yosano said on Friday that the government can take bold actions to counter speculations as the yen exchange rate has reached its lowest level in nearly forty years. "We can take bold actions against excessive speculation in the foreign exchange market," Yosano told reporters at a press conference on Friday. Yosano has used the term "bold actions" several times before, which refers to intervention in the foreign exchange market and is usually seen as a final warning to traders. She stated that the position of the Japanese Ministry of Finance on currency issues has not changed. Yosano's comments have supported the yen to some extent, bringing it close to 161 yen against the US dollar, but this level is still lower than when the Japanese authorities intervened to support the yen in late April. The next key level for the yen is 161.95, and if it falls below that level, it will hit its lowest point since December 1986. The decline in the yen coincides with a significant strengthening of the US dollar, as the market expects the Federal Reserve to begin raising interest rates in the coming months, resulting in the US dollar seeing its biggest two-day rally in three months. Earlier this week, the Bank of Japan raised interest rates to the highest level since 1995, but this move had little effect on the yen. Bank of Japan Deputy Governor Ryoichi Takenaka said in parliament on Friday that the exchange rate is still an important factor affecting the economy and prices, adding that the Bank of Japan will closely monitor the impact of the exchange rate. Yosano stated that currency issues were also discussed at the G7 summit held in France this week. G7 leaders reiterated their existing commitments on exchange rates in a joint statement. Japan intervened in the market for the first time in a month as of May 27, utilizing a record 11.73 trillion yen (about 728 billion US dollars). This operation was carried out after the yen fell to 160.72 against the dollar, with the yen briefly rising to 155 during the Golden Week holiday in early May. To raise funds for intervention, Japan may have sold foreign securities, including US treasuries. Given the increasing concerns about the stability of the US treasury market, this action may attract close attention from Washington. The US stock market was closed on Friday due to a holiday.