TOKYO — Japan’s Finance Minister Satsuki Katayama reiterated on Friday that the government stands prepared to act on currency fluctuations, as traders kept a close eye on the possibility of official intervention in the foreign exchange market.
Speaking at a regularly scheduled press conference, Katayama addressed concerns about the yen’s ongoing slide. “Our stance has not changed. We will respond appropriately at any time as needed,” she said.
The minister also noted that Japanese officials have maintained close communication with their counterparts in the United States regarding currency matters — and that those conversations have continued “even when the U.S. is on holiday.”
On Thursday, the yen moved sharply higher against the dollar, prompting speculation among traders that authorities may have stepped in. However, many in the market felt the move was too modest to confirm an intervention. The yen then received an additional lift after U.S. employment data came in weaker than anticipated, pushing the dollar down.
By Friday, the yen was trading at 161.2 per dollar. Earlier in the week, the currency had sunk to 162.84 per dollar — its weakest level in 40 years.
Katayama also turned attention to rising Japanese government bond yields, pledging that the government remains committed to keeping confidence in the bond market intact and ensuring the long-term health of public finances.
Benchmark government bond yields in Japan surged to a level not seen in nearly 30 years on Friday, reflecting growing investor anxiety over the country’s fiscal outlook.
