Japan’s Finance Minister Satsuki Katayama renewed warnings on yen volatility after US inflation data heated up, stating she is prepared to take action in the currency market if needed. The yen briefly touched 158.95 per dollar, its weakest level this month, following stronger-than-expected US consumer price data showing the fastest inflation in five months. Katayama emphasized that the stance of Washington and Tokyo remains unchanged since their joint intervention in July to prop up the yen.
Speaking ahead of a G20 meeting in Bangkok, she affirmed that the US is aligned with Japan and that both countries will act without hesitation if necessary. Her comments came as the yen pared some losses after US Treasury yields declined following the initial reaction to the CPI data. Katayama is attending international meetings where finance chiefs are expected to discuss global challenges, including rising bond yields and financial risks from frontier artificial intelligence.
She reiterated that Japan’s foreign exchange policy remains consistent with the coordinated message sent during the July intervention with the United States.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing