Japan’s Finance Minister Satsuki Katayama confirmed authorities are prepared to intervene if currency movements become disorderly, in coordination with US counterparts. Speaking ahead of the US midterm elections, she emphasized adherence to a joint statement with the US and readiness to act against excessive speculation. Polls suggest a likely Democratic takeover of the House, which could constrain President Trump’s fiscal agenda, potentially weakening the dollar and strengthening the yen.
Katayama noted that leadership changes post-election are unlikely, and the US Treasury Secretary would likely remain. She reiterated shared concerns over yen weakness between Trump and Prime Minister Sanae Takaichi, referencing their September summit. The yen traded around 157.84 per dollar, with Katayama stressing the need to prevent volatility.
Asian equities, especially AI-related stocks, may face pressure if Democrats tighten scrutiny on AI investment and energy costs. Geopolitical risks, including potential US escalation with Iran, could further impact markets.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing