Japan, U.S. Remain Ready for Decisive Forex Action: Katayama

Tokyo, June 23 (Jiji Press)–Japan and the United States remain ready to take “decisive measures” on the foreign exchange market when necessary to address the yen’s weakness, Finance Minister Satsuki Katayama said Tuesday. Katayama and U.S. Treasury Secretary Scott Bessent had an online meeting Monday night, the Japanese minister told reporters after the dollar rose as high as 161.93 yen in New York on Monday, nearing its highest level since December 1986. The two countries “have firmly agreed to take decisive measures whenever necessary, and that is absolutely unshakable,” Katayama said. She thus signaled her readiness to intervene in the currency market and warned against speculative moves. Katayama added that Japan-U.S. cooperation in responding to foreign exchange market developments is “becoming closely aligned and increasingly strong.” According to Katayama, the online meeting lasted about an hour. The two officials also discussed developments in global financial markets and the Middle East situation, including navigation through the Strait of Hormuz. After the dollar exceeded 161.90 yen, it fell to around 161 yen temporarily as market players speculated that Japan may intervene again to prop up the falling yen. Data between late April and late May have shown that the government and the Bank of Japan spent a record 11.7 trillion yen on currency market interventions during the period, but the effects are seen as fading. END [Copyright The Jiji Press, Ltd.]