Japan Finance Minister Katayama signals readiness to intervene in yen market

Japanese Finance Minister Satsuki Katayama said the government will respond appropriately at any time to excessive yen moves, emphasizing ongoing close contact with U.S. authorities, including Treasury Secretary Scott Bessent. The yen was trading around 161.2 per dollar after hitting a 40‑year low of 162.84, and the Finance Ministry has not disclosed any specific intervention threshold, making the uncertainty itself a policy tool.

Japan spent ¥11.73 trillion (about $73 billion) in April‑May to support the yen, the largest sustained intervention in its history, and no further action has been taken since. Officials highlighted that the structural driver of yen weakness is the interest‑rate gap with the United States, which raises import‑cost pressures and domestic inflation. The ministry’s new stance combines potential dollar‑selling operations with coordination with the Bank of Japan to address the carry‑trade dynamics.