Japan Is 'Very Close' to Intervention, Former Forex Chief Says.

According to Mitsuhiro Furusawa, a former top currency official in Japan, the country is on the verge of intervening in the currency market if the yen continues to weaken against the dollar. Furusawa believes that the recent depreciation of the yen is due to the rate differential between Japan and the US. He expects Japanese authorities to take action before the yen reaches 160 yen to the dollar. Last week, Japan, the US, and South Korea issued a joint statement acknowledging concerns over the depreciation of their currencies. However, the statement does not give Japan a complete go-ahead to intervene. [Extracted from the article]