Japan's Finance Minister has issued another warning that all options, including direct intervention in the currency market, are available to address the recent weakness of the yen.
"I have stated many times that we will take bold action, including all available measures, if necessary," Finance Minister Sakura Katsu said on Friday. Her comments provided a boost to the yen.
She also downplayed the view expressed by US Treasury Secretary Scott Bessent, who indicated a preference for the Bank of Japan to use policy tools to support the yen rather than intervening in the foreign exchange market.
"We agreed that recent movements have been excessive and do not reflect fundamentals," Katsu stated, referring to her meeting with Bessent in Washington on Monday.
Prior to Katsu's latest remarks, the US Treasury Department released a statement in which Bessent discussed monetary policy, a point the Japanese Finance Minister had not mentioned when summarizing their Monday meeting.
The US Treasury statement said, "Given the inherent adverse impacts of excessive exchange rate volatility, the Secretary also emphasized the rationale for formulating and communicating monetary policy appropriately."
Katsu reiterated her stance that the joint foreign exchange statement issued by the two countries last year grants her the "freedom to act" as needed, including conducting intervention.
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