JAPAN TODAY


 

 
Japanese Finance Minister Satsuki Katayama expressed concern about the yen's recent depreciation on Friday, saying the government is ready to take "decisive action" to stem the currency's continued fall.

"I have repeatedly said that we will take every possible measure," Katayama told a news conference, as the Japanese currency again weakened to the upper 158 range against the U.S. dollar earlier Friday.

Katayama said she and U.S. Treasury Secretary Scott Bessent recently shared the view that the yen's recent weakness does not reflect economic fundamentals and is "excessive."

The Japanese and U.S. finance chiefs held talks earlier this week in Washington on the sidelines of a multilateral meeting over critical minerals supply chains.

Katayama also did not rule out market intervention by Japanese authorities, saying such a step has been mentioned in a joint statement issued by Japanese and U.S. finance chiefs last September.

Earlier this week, she made remarks taken as verbal warnings of possible intervention as the yen declined to the 159 zone against the dollar, its lowest level since July 2024.

The Japanese unit has been under selling pressure since Prime Minister Sanae Takaichi took office in October due to expectations that her expansionary fiscal spending policy will worsen Japan's fiscal health.

The currency has faced renewed selling since Takaichi decided to dissolve the House of Representatives for a general election, a move seen as potentially allowing her to advance her agenda.