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Japan’s finance minister says authorities are ready to act on currency

Satsuki Katayama said Japan will track market trends and economic data to support fiscal sustainability, while leaving monetary policy tools to the Bank of Japan.

Reported · Written up by our desk · Central Banks

Japan’s Finance Minister Satsuki Katayama said the government is ready to take appropriate action on currency at any time, adding that authorities will monitor market trends and economic data as part of ensuring fiscal sustainability, according to FXStreet.

Katayama declined to discuss specific forex levels. He said monetary policy tools should be set by the Bank of Japan, and noted that Japan understands it cannot interfere with or force pension fund portfolio management.

The article also links yen moves to multiple drivers, including Bank of Japan policy, the interest-rate differential between Japan and the United States, and risk sentiment among traders. It adds that the BoJ has a currency-control mandate and has intervened directly in currency markets at times.

FXStreet further says the BoJ’s ultra-loose policy from 2013 to 2024 contributed to yen depreciation through widening policy divergence with other central banks, while the gradual unwinding of that stance has offered some support to the yen more recently.

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