TOKYO: The yen dropped to its lowest level since 1990 yesterday, into the zone that triggered intervention by Japanese authorities in 2022, prompting the finance minister to warn Japan would take “decisive steps” against excessive currency moves.

The dollar briefly rose to 151.97 yen in the Asia session, its strongest against the yen since mid-1990, but was last down 0.12% at 151.42.

Japanese authorities stepped in to defend the yen at 151.94 in 2022 and finance minister Shunichi Suzuki yesterday used the same words that preceded that intervention, warning Japan would take “decisive steps” against excessive currency moves.

The finance ministry said yesterday that it will hold talks with the Bank of Japan (BoJ) and the Financial Services Agency and will brief reporters afterwards.

The announcement boosted the yen slightly.

The yen has slumped more than 7% this year, driven by the yawning gap between US and Japanese bond yields, which the BoJ’s small interest rate hike last week did little to change.

“The market is very sensitive to the 152 area,” said National Australia Bank strategist Rodrigo Catril.

“If we were to break that level then recent history would suggest that intervention would be much more likely.”