Japanese Finance Minister Uses Both Carrot and Stick; Katayama Katsuki Says Will Communicate with Market on Monday if Necessary
Japanese Finance Minister Katsuyuki Katayama attempted to reassure investors while also issuing a warning, saying that if necessary, he would communicate with the financial markets on Monday.
As the results of Sunday’s election were gradually announced, Katayama reiterated on a television program that he maintains close contact with US Treasury Secretary Scott Besant. She stated that the two share the responsibility of maintaining the stability of the USD-JPY exchange rate.
“Japan and the United States have signed a memorandum of understanding that clearly stipulates we can take decisive action against rapid fluctuations that deviate from fundamentals,” Katayama said. “That, of course, includes intervention.”
The United States appears to have already stepped in to support Japan in the foreign exchange market. Last month, the sharp fluctuations in the yen were initially thought to be possible intervention measures from Tokyo, but it was later revealed that the main actions came from the US. Concerns that Washington and Tokyo might take joint action or intervene have also deterred speculators.
However, this strategy may not work again. This means that another weakening of the yen could ultimately lead to government intervention, and Katayama may be hoping to delay or avoid such a situation through her remarks.
Katayama said she is closely monitoring financial markets while emphasizing the pursuit of responsible fiscal policy.
“The Takamichi government is very concerned about fiscal sustainability and also hopes to maintain it,” she said.
Editor: Ding Wenwu
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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