TOKYO—Japan’s government and central bank said on Friday they were concerned by recent sharp falls in the yen in a rare joint statement, the strongest warning to date that Tokyo could intervene to support the currency as it plumbs 20-year lows.
The statement underscores growing concern among policymakers over the damage that sharp yen depreciation could inflict on Japan’s fragile economy by hurting business activity and consumers.
But many market players doubt that Group of Seven (G-7) member Japan will step in soon to directly prop up the yen, a diplomatically fraught and potentially costly course of action that last occurred 20 years ago….