Japan renews FX warning, ready for 'decisive action' with US coordination
Japanese yen and US dollar banknotes are seen in this illustration picture taken Jun 16, 2022. (Photo: REUTERS/Florence Lo)
TOKYO: Japanese Finance Minister Satsuki Katayama renewed warnings of currency intervention on Friday (Apr 24), stressing "decisive action" in close coordination with the United States as the yen hovered near the psychologically important 160-per-dollar line.
"We have been seeing speculative activity on currency markets influenced by volatility in oil-related prices," Katayama said at a regular press conference.
"We can take decisive, strong action against those speculative activities, based on our agreement with the United States," she said. "We have been in constant contact (with the United States) and will continue to do so without interruption, including through the holiday period."
Katayama's emphasis on US coordination points to possible joint measures to stem the yen's weakness, after the New York Federal Reserve's rate checks in January primed investors for the first US-Japan currency intervention in 15 years.
The Japanese yen hovered near the 160 level that many in the market view as the line in the sand for official intervention.
