The Japanese yen surged to a fresh 18-month high against the US dollar on Monday, prompting Finance Minister Taro Aso to threaten intervention in the foreign exchange market.
The USD/JPY pair fell below ¥145 in early Asian trade, raising fears of another round of competitive devaluations by countries trying to boost their export competitiveness.
Mr. Aso said that Japan “will take decisive steps if needed” to halt the yen’s appreciation, although he provided no further details.
This is the latest development in an ongoing global currency war that shows no signs of abating.
