Japan is "extremely close" to intervening in its currency, according to Standard Chartered.

• According to Steven Englander of Standard Chartered Bank, Japan is close to taking action and the political consequences have already been discussed, with no one requesting a weaker yen.
• Any intervention in the yen would buy time for Japanese authorities until the U.S. Federal Reserve starts cutting interest rates or the Bank of Japan starts hiking its rates a little more, according to Englander.

According to Englander, who spoke on CNBC's "Squawk Box Asia" on Thursday, we are very close to Japan's authorities taking action, as they have already discussed the political consequences and no one is requesting a weaker yen.

On Thursday, the Canadian dollar traded at 151.47 against the U.S. dollar, after reaching its weakest level in 34 years at 151.97 the previous day.

These multi-decade lows have prompted market speculation over potential intervention of the currency.

This week, Japan's finance minister Shunichi Suzuki stated that measures to address unpredictable currency fluctuations were still a possibility. On Wednesday, the vice finance minister for international affairs, Masato Kanda, reportedly emphasized the importance of closely monitoring and responding to the yen's sudden movements.

Yoshimasa Hayashi, the Chief Cabinet Secretary, stated on Thursday that authorities will not exclude any options to address excessive currency fluctuations, as reported by Reuters, in line with other members of the administration who are closely monitoring currency movements with great concern.

The Englander of Standard Chartered stated that the potential intervention in the yen would allow Japanese authorities to buy time until the US Federal Reserve starts lowering interest rates or until the Bank of Japan raises its rates slightly.

Japanese authorities' intervention in the yen in 2022 was successful, despite initial skepticism among investors about the effectiveness of currency intervention.

Last Wednesday, the Fed kept its benchmark rate steady as expected and signaled plans for multiple rate cuts before the end of the year.