Japan’s Finance Minister Satsuki Katayama told markets this week that her government “can act on foreign exchange at any time,” a warning shot aimed squarely at currency speculators who have been pummeling the yen for months. The Japanese currency has been trading between 160 and 162 per US dollar, levels not seen in roughly 40 years.
A $72 billion warning that didn’t stick
Between late April and late May, Japan poured a record ¥11.7 trillion, roughly $72 to $73.5 billion, into forex markets to prop up the yen. It didn’t work. The yen kept sliding anyway.
Katayama’s latest comments, delivered multiple times throughout June on the 2nd, 22nd, and 30th, represent an escalation in rhetoric. She committed to responding “appropriately to currency moves at any time” and specifically flagged the potential for “decisive action.”
On June 21-22, Katayama held online discussions with US Treasury Secretary Scott Bessent. The two reportedly agreed on the need for “bold” intervention if circumstances demand it.
