Japan ready to act on yen, in contact with US, finance minister says

Japan's Finance Minister Satsuki Katayama has signaled the government's resolve to act on currency movements, reinforcing warnings against speculative trading. "Our stance has not changed. We will respond appropriately at any time as needed," Katayama stated at a press conference, addressing the yen's persistent decline.

The yen has been trading near a 40-year low against the U.S. dollar, trading at 161.2 yen on Friday. This weakness has fueled market anticipation of possible intervention by Japanese authorities. A sudden jump in the yen against the dollar on Thursday briefly raised hopes of intervention, though traders deemed the move too small to confirm official action. Subsequent softer-than-expected U.S. jobs figures further weakened the dollar, providing additional support to the yen.

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Our stance has not changed. We will respond appropriately at any time as needed.

Beyond currency concerns, Katayama also addressed the rising yields on Japanese government bonds (JGBs). She stressed the government's commitment to upholding confidence in the bond market and ensuring the sustainability of public finances. Benchmark JGB yields had reached a near 30-year high on Friday, driven by investor concerns about the Japanese economy's fiscal health.

Katayama also highlighted ongoing communication with U.S. authorities regarding foreign exchange issues. This close contact persists even during U.S. holidays, underscoring the importance of bilateral coordination on global economic matters.

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even when the U.S. is on holiday.