The Japanese yen rises against the US dollar, the warning from the Japanese Prime Minister exacerbates intervention risks.

The Japanese yen strengthened against the US dollar on Monday, after the yen had been falling recently. Traders at the beginning of the week were highly vigilant of the possibility of Japan intervening in the market. The yen briefly rose nearly 1% to 154.22 yen to the US dollar. Earlier, Japanese Prime Minister Miki Hayashi issued a warning to the market on Sunday, and signs last Friday suggested that the United States may join forces with Japan to defend the yen exchange rate. Japanese stocks fell, with the Nikkei 225 index dropping by 1.9% and the benchmark 10-year government bond rising. Junz Murasato, a finance official at the Japanese Ministry of Finance, stated on Monday morning that the Japanese government will closely coordinate with counterparts in Washington and make appropriate responses as needed to fluctuations in the foreign exchange market. He refused to comment on rumors of officials controlling exchange rates in the market. Hayashi Miki stated on Sunday, "As Prime Minister, I should not comment on things that should be decided by the market, but we will take all necessary measures to address speculative and highly abnormal market fluctuations." Hayashi did not specify whether her comments were related to Japanese government bond yields or the yen.