Finance Minister Katayama aligns with US Treasury concerns over excessive yen volatility and confirms 24-hour communication with Washington.
Japan’s Finance Minister Shunichi Katayama indicated readiness to take decisive action on the yen, which hit a 40-year low against the dollar. His comments followed the US Treasury’s semi-annual currency report, which labeled excessive yen volatility as undesirable and urged further Bank of Japan rate hikes.
Katayama cited the joint US-Japan statement from the report, aligning Tokyo’s stance with Washington’s language. While declining to specify trigger levels for intervention, he emphasized Japan’s preparedness to act unilaterally if needed. The yen’s sharp decline has heightened market sensitivity to potential policy responses.
The minister confirmed round-the-clock communication with US authorities, keeping intervention risk elevated for short-yen positions. The Treasury’s report also flagged substantial yen undervaluation, adding pressure on Japanese policymakers to address currency stability.