One month after coordinated intervention by Japan and the United States, the yen has once again been trading at around ¥160 to the dollar. A meeting that could influence the outlook for exchange rates will be held in the United States, with Japan's Minister of Finance and BOJ governor attending, amid speculation about the possibility of further coordinated intervention.
One month after coordinated intervention by Japan and the United States, the yen has once again been trading at around ¥160 to the dollar. Views among officials from the Ministry of Finance and the BOJ, as well as experts, are divided over effective measures to halt the yen's decline. The meeting will begin on the night of the 31st, U.S. time, and attention is focused on the Japanese attendees and developments surrounding the press conference to follow.
There is a view in the market that expectations of tighter inflation control grew following remarks by FRB Chair Kevin Warsh, leading to further yen depreciation. The possibility of interest-rate hikes and coordinated intervention as measures to address the yen's decline is being discussed, and future policy decisions are a key focus for the market.
Finance Minister Katayama Satsuki (片山さつき) and BOJ Governor Ueda Kazuo (植田和男) are scheduled to attend the meeting from Japan, and arrangements are being made for a meeting with U.S. Treasury Secretary Scott Bessent on the sidelines. The Japanese side's press conference after the meeting is expected to take place on the morning of the 2nd of next month, Japan time.
Experts point out that the intervention and policy coordination discussed at the meeting could affect the yen exchange rate, while also noting that the rate is heavily influenced by overseas factors. Some believe that remarks hinting at further coordinated intervention could help check the yen's decline.