Japan's finance minister has signalled that the country is prepared to resume its intervention in the currency market as a rising yen threatens corporate profits and economic growth.

Sadakazu Tanigaki said: “We need to watch currency movements carefully . . . we will take necessary action if [they] deviate from economic fundamentals.” This week ministers and officials have hinted at their readiness to step into the market after a six-month break as the currency climbed towards a four-month high of Y107.46 against the dollar.