TOKYO: Japan’s top currency official says the government will take all possible steps to respond to foreign exchange moves as needed, sending a fresh warning to speculators as the yen remains under pressure amid tensions in the Middle East.

“Some market participants said speculative moves in crude oil futures are affecting the foreign exchange market,” vice-finance minister for International Affairs, Atsushi Mimura, told reporters yesterday.

“Considering the impact of currency moves on the economy and people’s daily lives, the government will take all possible measures at any time,” he said.

Mimura spoke as concerns over the conflict in the Middle East and rising oil prices pushed up US long-term yields and supported the dollar.

The yen rose a tad after his remarks to 159.02 to the US dollar before reversing direction to trade around 159.40 mid-morning yesterday in Tokyo.

Before the three-day weekend in Tokyo, the yen strengthened as far as 157.51, moving away from levels where authorities are seen as poised to intervene.

That move came after the Bank of Japan (BoJ) held policy settings steady last Thursday. Governor Kazuo Ueda struck a cautious hawkish tone during his post-decision press conference, keeping alive the possibility of an April interest rate hike, supporting the currency.