Verbal intervention: Katayama warns on rapid yen moves, vows vigilance on FX stability

Japan’s finance minister issues fresh warning over rapid yen moves

Japan’s Finance Minister Satsuki Katayama delivered a pointed warning over what she described as “one-sided, rapid” currency moves, in her latest attempt at verbal intervention to steady the yen after recent weakness.

Katayama said

• it was “important for currencies to move in a stable manner reflecting fundamentals”
• and that the government was “closely watching FX moves with a high sense of urgency.”

The remarks echo a familiar warning from Tokyo policymakers that further sharp depreciation could prompt a stronger response, including potential intervention.

The comments come a day after the Bank of Japan left policy unchanged in a 7–2 vote — a decision Katayama called “extremely reasonable” — and as officials weigh how to balance ongoing monetary support with a desire to curb excessive yen volatility.

Earlier, Katayama said discussions on lowering gasoline prices had progressed, including talks on possible funding sources, signalling continued efforts to ease the cost-of-living burden on households.

His latest FX comments, however, underscored continued concern within the government about renewed downward pressure on the yen, which has hovered near multi-month lows amid widening yield differentials with the U.S.

—

Katayama’s remarks highlight Tokyo’s growing unease with yen weakness following the BoJ’s steady policy stance. While largely rhetorical, such warnings can precede coordinated efforts to stabilise the currency if volatility intensifies.

USD/JPY is little changed around its session lows circa 153.84.

—

Katayama adds

This article was written by Eamonn Sheridan at investinglive.com.