Japanese Finance Minister Katayama Reaffirms Readiness for Decisive FX Action, Citing US Treasury Report

• Japan’s Finance Minister Katayama reiterated readiness for decisive FX action.
• Comments followed US Treasury report deeming yen volatility undesirable.
• JPY gained support, USD/JPY fell, keeping intervention risk live.

Japanese Finance Minister Satsuki Katayama stated on Thursday and Friday that authorities are prepared to take decisive action on foreign exchange as needed. These remarks followed the US Treasury’s semi-annual currency report, which called excessive yen volatility undesirable. Katayama explicitly referenced a joint US-Japan statement within the report, aligning Tokyo’s rhetoric with Washington’s stance and confirming “round-the-clock communication” with the US. While refraining from commenting on specific currency levels, her statements maintained the risk of intervention. The Japanese Yen drew fresh support following these comments, with USD/JPY challenging 163.00 and trading lower on both days.