Japan Finance Minister Warns of Currency Intervention to Support Yen

Finance Minister Satsuki Katayama announced Friday that Japan is prepared to respond to excessive currency movements to stabilize the yen. The currency recently reached a 40-year low of 162.84 per U.S. dollar, though it recovered slightly to 161.2 following weak U.S. jobs data. Katayama confirmed that Japanese authorities are maintaining regular communication with Washington regarding foreign exchange volatility, even during U.S. public holidays.

The currency devaluation has caused significant domestic economic strain, with yen-linked bankruptcies increasing by 32.3% in the first half of the year. Simultaneously, benchmark 10-year Japanese government bond yields reached a 30-year high. This volatility is driven by investor concerns regarding Prime Minister Sanae Takaichi's spending ambitions and potential new fiscal stimulus measures.

Katayama reaffirmed the government's commitment to maintaining market confidence in the nation's fiscal health. She noted that the government continues to coordinate closely with the Bank of Japan to manage the economic situation.