Japan ready to take decisive action on forex if needed, finance minister says
Finance Minister Satsuki Katayama said Tokyo will act if needed as the yen fell to 163.24 per dollar, its weakest since late 1986.
- On Wednesday, Japanese Finance Minister Satsuki Katayama signaled readiness to intervene in currency markets as the yen slid to a 40-year low of 163.24 per dollar. Chief Cabinet Secretary Minoru Kihara confirmed the government is prepared to "respond as appropriate at any time."
- Prime Minister Sanae Takaichi's $2.3 trillion growth strategy, unveiled last month, has fueled market concerns about government influence over monetary policy, compounding pressures from Middle East instability and rising energy costs.
- The Bank of Japan raised interest rates to 1% in June, with analysts projecting a move to 1.25% by year-end. Markets remain on alert for intervention, recalling prior actions when the yen weakened beyond the 160 level in April.
- Nomura Research Institute economist Takahide Kiuchi warned that the blueprint "failed to dispel concern" over fiscal policy and government meddling in monetary decisions, risking the BOJ falling behind the curve in managing inflation.
- Deutsche Bank strategist Mallika Sachdeva suggested Japan may shift focus toward controlling bond yields to finance the growth plan while maintaining fiscal sustainability and keeping nominal economic growth above funding costs.
12 Articles
12 Articles
Japan's Katayama Says to Take Bold FX Steps Decisively as Needed
Japanese authorities will take bold steps to counter moves in the currency market decisively as needed, and a US Treasury report issued overnight underscores a shared view that excessive currency moves are undesirable, Finance Minister Satsuki Katayama said.
BREAKING NEWS: Japan to act "resolutely" when required vs. yen's fall: finance chief
The Japanese government will act "resolutely" when required, Finance Minister Satsuki Katayama said Thursday as the yen fell to its lowest in over 39 years, passing the 163 line against the U.S. dollar, fueling speculation of intervention by Japanese authorities.
Japan ready to take decisive currency action as yen hits 40-year low
(Tokyo=Yonhap News) Correspondent Lee Do-yeon = As the value of the Japanese yen fell to its lowest level in about 40 years on the 22nd, authorities have hinted at the possibility of intervention.
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