TOKYO - Japan's finance minister on Friday repeated his threat to intervene in currency markets if necessary to weaken the yen, illustrating government resolve in the face of overseas criticism.
"As we have been saying, our basic stance is that we will take decisive steps, including intervention, if necessary, and I'd like to maintain this stance," Yoshihiko Noda said at a news conference after a cabinet meeting.
Noda was retained in Prime Minister Naoto Kan's cabinet reshuffle Friday, following the premier's victory in a bruising leadership challenge this week from Ichiro Ozawa, his pro-intervention rival.
Kan likewise suggested Japan would take further action if necessary, saying at a press conference: "We cannot take our guard down when it comes to the economy."
"So far, the interventions have worked to a certain degree," he added.
Japan on Wednesday carried out its first global currency market intervention since 2004 in an estimated two trillion yen (US$23 billion) move to help safeguard an export-driven recovery.
The decision surprised markets as Kan sought to silence those accusing him of inaction and win over supporters of Ozawa.
A strong yen puts Japanese exporters at a disadvantage because it erodes their repatriated earnings and competitiveness, in turn threatening the nation's fragile growth.
However, any repeat foray into the markets if the yen resumes upward moves may provoke ire from Japan's Group of Seven partners, after its intervention Wednesday was rounded on in Washington and Brussels.
Luxembourg Prime Minister Jean-Claude Juncker on Thursday hit out at such action on currency markets, saying his eurozone partners "don't like unilateral intervention".
Juncker, who heads the Eurogroup of finance ministers who manage the shared currency, spoke out as US Treasury Secretary Timothy Geithner bluntly warned China it had to let the yuan rise against the dollar to end trade distortions.
Earlier, US Democratic Representative Sander Levin, who chairs the House Ways and Means Committee which has power over taxes and trade policy, called Japan's policy "predatory" and "deeply disturbing".
With a large trade and current account surplus, Japan has a relatively weak case to lower its currency to boost exports, some analysts argue.
And while the yen recently hit 15-year highs on nominal terms, it is still below its 1995 peak when adjusted for price changes and compared with a basket of currencies used by Japan's largest trading partners, say analysts.
Noda said he is "checking" the overseas response to the intervention, adding, "I understand there are various opinions."
The yen was at 85.72 Friday, nearly three yen off a 15-year high of 82.86 reached before the intervention.
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