Satsuki Katayama, an executive from Japan's ruling party, expressed concerns about the recent significant decline in the yen against the dollar, stating that such volatility is not in line with fundamental economic factors. She highlighted that the yen's movement to near 155 from 140 at the start of the year is excessive, suggesting that Japanese authorities may need to take action to stabilize the currency market.
In a recent interview, Katayama emphasized the potential need for Japanese authorities to intervene, mentioning that such action could be justified given the current circumstances. Despite no immediate intervention following the G7 finance leaders meeting in Washington, Katayama, drawing on her experience at the Ministry of Finance, indicated that authorities are likely assessing the most effective timing for any potential currency intervention.
Moreover, in light of the yen's decline to a 34-year low against the dollar, there is growing speculation about the possibility of currency intervention by Japanese authorities. Katayama highlighted the importance of not rushing to raise interest rates by the Bank of Japan, considering the uncertain global economic conditions. The approaching 155 yen level against the dollar is being closely monitored, as it may trigger Japanese authorities to take action in the currency market to support the yen's value.