Tokyo: Japanese Finance Minister Satsuki Katayama on Tuesday warned against excessive movements in the foreign exchange market, stating that the government would take action against speculative-driven yen depreciation. She addressed the issue at a press conference following a Cabinet meeting, highlighting the yen's recent decline to the upper JPY 157 range against the US dollar last week.
According to Kuwait News Agency, Katayama emphasized that the currency's movements could not be justified by economic fundamentals alone. "I do not think the movements reflect economic fundamentals at all. Without speculative activity, the yen would not have fallen to such levels," she remarked. Katayama indicated that, in line with the September Japan-US finance ministers' statement, the government would take action against excessive movements, "including speculative ones." She further stated that the authorities are prepared to manage excessive currency fluctuations, suggesting a readiness to act if volatility increases.
The yen has faced selling pressure despite a recent rate hike by the Bank of Japan, as market participants speculated that the pace of further monetary tightening might remain gradual. In response to inquiries about rising long-term interest rates, which have reached levels not seen in about 26 years, Katayama refuted claims that the government's fiscal stance was to blame. She asserted that the administration is following a "responsible proactive fiscal policy" while ensuring fiscal sustainability. "We believe our policies are being implemented within an orderly framework, and such criticism does not apply," she affirmed.