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Japan finance minister says authorities are ready to act on FX moves

Katayama declined to name specific FX levels but said Japan could take decisive steps if needed, with the yen heavily influenced by Bank of Japan policy and the US-Japan bond yield spread.

Reported · Written up by our desk · Central Banks

Japan’s Finance Minister Satsuki Katayama said authorities are ready to act on currency moves whenever necessary, adding they would be prepared to take resolute, decisive steps if required, according to FXStreet.

Katayama said he would not discuss particular foreign exchange levels, focusing instead on the framework for possible action.

The report notes that the yen’s value is broadly driven by Japan’s economic performance but more specifically by Bank of Japan policy, the differential between Japanese and US bond yields, and risk sentiment among traders.

It also highlights that Japan’s ultra-loose policy from 2013 to 2024 contributed to yen depreciation, while the gradual unwinding of that stance and changes in interest-rate policy abroad have recently provided support to the currency.

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