Japan Finance Chief Warns of “Approaching” Action on Weak Yen

Tokyo, April 30 (Jiji Press)–Japan’s Finance Minister Satsuki Katayama told reporters Thursday that the time for the country to take “decisive action” against the yen’s rapid depreciation is “approaching.” She is believed to have hinted at a possible currency market intervention involving yen buying and dollar selling. Echoing Katayama, Vice Finance Minister for International Affairs Atsushi Mimura separately told reporters, “Our (avowed) decisive action is just around the corner.” Warning against the recent speculative trading on the currency market, he added, “This is our final advisory for (market players) to withdraw (from such activities).” On the possibility of Japan launching a currency intervention jointly with the United States, Mimura said, “We’ve been working very closely and keeping in contact with the United States.” Following the series of remarks by the Japanese finance officials, the dollar fell below 157 yen in London currency trading Thursday. In Tokyo, the dollar stood at 160.14-15 yen at 5 p.m. Thursday. In addition, Mimura did not rule out the possibility of Japan stepping into the crude oil futures market, saying, “Our focus is on all directions.” Late last month, when the dollar climbed above 160 yen, Mimura said that Japan “would soon need” to implement “decisive measures.” Currency market players believe that the Japanese government and the Bank of Japan have set their defense line at levels over 160 yen that prompted the Japanese authorities to conduct yen-buying, dollar-selling interventions in 2024. END [Copyright The Jiji Press, Ltd.]