Katayama’s comments largely repeat the standard verbal warning Tokyo has issued repeatedly as the yen has languished near multi-decade lows, and are unlikely to shift the currency’s trajectory on their own given the lack of any new specifics on timing or thresholds. With the yen hovering around 162 per dollar, well beyond levels that previously triggered actual intervention, traders will be watching for any escalation in tone or a shift toward the BOJ, which Katayama again deferred to on monetary policy, as the more meaningful lever for stabilising the currency.
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Katayama repeated Tokyo’s standard warning that it stands ready to act on FX, without offering any new detail as the yen holds near 162 per dollar.
Summary:
- Finance Minister Satsuki Katayama said the government stands ready to take appropriate action on FX anytime it is deemed necessary
- She said enhancing the international competitiveness of the Japanese economy would help maintain confidence in the yen
- Katayama declined to comment on specific currency levels, saying interest rates and forex rates are determined by various factors
- She said the government will monitor market developments and economic indicators to help achieve fiscal sustainability
- Katayama said specific monetary policy tools are up to the Bank of Japan to decide
Japan’s Finance Minister Satsuki Katayama on Thursday reiterated the government’s readiness to act on currency movements, as the yen continued to hover around 162 per dollar. Speaking in parliament, Katayama said the government stands ready to take appropriate action on foreign exchange whenever necessary, according to Reuters, echoing warnings she has issued repeatedly as yen weakness has persisted.
Asked about the currency’s structural weakness, Katayama said strengthening the international competitiveness of the Japanese economy would help maintain confidence in the yen. She declined to comment on specific currency levels, noting that interest rates and foreign exchange rates are shaped by a range of factors, and said the government will continue monitoring market developments and economic indicators with an eye toward achieving fiscal sustainability.
Katayama also deferred to the Bank of Japan on monetary policy, saying that specific policy tools remain up to the central bank to decide. Her remarks add to a now-familiar pattern of verbal warnings from Tokyo without new specifics on timing or currency thresholds, even as the yen remains well beyond levels that previously prompted the government to intervene directly in currency markets earlier this year.
This article was written by Eamonn Sheridan at investinglive.com.
