Japan fin min “Won’t exclude any options” , possibility of US/Japan joint yen intervention

Japan's Finance Minister, Katayama, has expressed concern over recent yen volatility, indicating readiness to act if needed. His comments highlight that currency intervention is an included option in the agreement with the U.S. This stance underscores Japan's unease with excessive currency movements, raising questions about imported inflation and market stability. The recent weakness of the yen reaffirmed discussions about the necessity for intervention, especially as rising prices for imports squeeze households amid ongoing inflation. Katayama's remarks are critical as they remind market participants of potential coordinated intervention with the U.S., limiting aggressive betting against the yen. While the remarks do not signal imminent action, they convey that authorities are closely observing market movements, signaling limited tolerance for destabilizing changes in the yen's value. With heightened sensitivity around currency fluctuations impacting national interests, vigilance from Japanese officials is expected to continue.