Japan's Finance Minister has hinted at a possible intervention in the foreign exchange market. This comment comes at a time when the strength of the Yen is becoming a concern within the domestic economy. The minister stated that such an intervention is naturally on the table, as it is considered an option to tackle the problem.
Forex intervention is seen as a tool for governments to stabilize their economies in Japan. When the Yen becomes too strong, it can hurt exporters as Japanese goods become more expensive overseas. Therefore, the government may intervene to weaken the Yen, which would make exports cheaper and potentially stimulate the economy. This issue is important to everyday Japanese citizens as economic health affects job security and living standards.
In the US or EU, governments also occasionally intervene in forex markets to manage their currencies for similar reasons. However, such interventions are generally less frequent and can be viewed more controversially. It's seen as a form of indirect market manipulation, and these regions prefer market forces to dictate currency strengths.