On February 2, the yen was sold in the foreign exchange market, temporarily weakening to the mid-155 yen level per US dollar.

The move came after Prime Minister Takaichi Sanae made remarks during an election campaign speech over the weekend that were taken by the market as an indication that the government is tolerant of further depreciation.

She said the management of the government’s Foreign Exchange Fund Special Account is doing well due to the weak yen and that the Japanese currency’s depreciation is a major opportunity for the export industry.

Last week, the yen had rapidly shifted toward appreciation over concerns about a possible coordinated intervention by Japan and the United States, at one point reaching the lower 152 yen range per dollar.