The Japanese yen, paired with the US dollar, is not declining yet but does not appear strong. The current USDJPY exchange rate stands at 154.39.
Bank of Japan governor Kazuo Ueda noted that the regulator might raise interest rates if the weakness of the Japanese yen leads to a sustained rise in prices due to active increases in import costs.
The Bank of Japan is expected to show how the yen's devaluation has affected economic conditions in its next quarterly price forecast.
Tougher comments from the local authorities provide some support for the Japanese currency. Additionally, the agreement among financial officials of the US, Japan, and South Korea to coordinate their actions in the currency market has stabilised the stock market situation.
All this is positive news. However, such actions do not eliminate the main reason for the Japanese yen's noticeable weakness, namely the difference in interest rates between the Bank of Japan and the US Federal Reserve.