{"text":[[{"start":9,"text":"Japan’s finance minister warned markets that authorities stood ready to take “appropriate and bold action” as the latest flare-up in the Iran war pushed the yen under ¥163 to the dollar for the first time in almost 40 years."}],[{"start":23.75,"text":"In a press conference on Wednesday, Satsuki Katayama said that Japan’s policy on potential intervention remained unchanged and that it would take action if necessary."}],[{"start":34.45,"text":"Traders said that her warning had little impact on the dollar-yen exchange rate and that the market could now see Katayama’s remarks as an invitation to test her true taste for intervention as global events spark a flight to the dollar."}],[{"start":49.900000000000006,"text":"“The situation between the US and Iran has taken a sudden turn for the worse — a deterioration that the world did not foresee — creating a very difficult environment,” Katayama said, adding that authorities would take action “should the need arise”."}],[{"start":65.35000000000001,"text":"Traders in Tokyo said the sharp rise in oil prices in recent days following renewed hostilities between the US, Iran and neighbouring Gulf nations was “inevitably” pushing the dollar higher against the yen and other currencies. "}],[{"start":80.60000000000001,"text":"Speculation that rising energy costs could convince the US Federal Reserve to raise interest rates sooner than previously expected had underpinned the dollar, analysts said."}],[{"start":91.75000000000001,"text":"The exposure of Japan to geopolitical turmoil was highlighted further on Wednesday when government data showed Japan’s trade deficit unexpectedly widened to $2.5bn in June — more than twice the deficit analysts had forecast. The Iran war has worsened Japan’s terms of trade and the weak yen highlights the vulnerabilities of a country that depends heavily on energy and food imports. "}],[{"start":115.10000000000002,"text":"Katayama has made a series of strong verbal warnings to the market in recent months. However, authorities have not directly stepped into the market since the ¥11.73tn ($71.9bn) intervention between late April and late May that temporarily pushed the yen significantly higher. "}],[{"start":132.90000000000003,"text":"The effects of the intervention had been completely reversed by the start of June, and the currency resumed a decline that has taken it through multi-decade lows. "}],[{"start":143.15000000000003,"text":"In early July, the yen tumbled through the ¥162 level against the dollar — an exchange rate where the Japanese authorities had previously stepped in, and was widely considered by markets to be a “line in the sand”."}],[{"start":156.55000000000004,"text":"Despite Katayama’s strong language, no intervention came and analysts have since revised their theories about where a new line may lie. "}],[{"start":164.80000000000004,"text":"The tactics of Atsushi Mimura, the vice-minister of finance for international affairs who ultimately decides on intervention, appear to have changed. Where previously he spoke in public ahead of intervention to issue a “final warning” to speculators, his new strategy — according to people familiar with the situation — has been to maintain the element of surprise and keep markets guessing."}],[{"start":189.30000000000004,"text":"Yujiro Goto, chief FX analyst at Nomura in Tokyo, said: “Because we haven’t heard any strong verbal intervention from Mimura, I think the market is now testing the intervention threshold of the Japanese authorities. We have been at ¥162 versus the dollar, now we are at ¥163, so the level at which the authorities will move is clearly higher than it was in April or May.”"}],[{"start":219.70000000000005,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1784699937_9257.mp3"}