Tokyo warns of action against excessive yen volatility, having spent nearly 10 trillion yen since April to stabilize the currency.
Japan’s Finance Minister reaffirmed readiness to intervene in currency markets to curb excessive yen volatility, citing spillovers from oil price swings and bond yields. The yen recently retreated to near 160 per dollar, a level authorities view as critical, after peaking at 155 in early May.
Officials confirmed Japan has spent close to 10 trillion yen, or $63 billion, on yen-buying intervention since April 30, its first market action in nearly two years. Reserves remain liquid, with cash deposits and maturing assets avoiding the need to sell US Treasuries to fund operations.
The topic was discussed informally at the G7, though Katayama declined to confirm whether intervention had occurred. Markets remain on alert as the yen’s decline tests Tokyo’s resolve.