Finance Minister Katayama said at a post-Cabinet press conference that the policy for responding to the foreign-exchange market had not changed at all since the Japan-US coordinated intervention, and indicated a commitment to maintaining orderly markets. The yen briefly rose into the ¥153 range, while speculation that the GPIF would review its asset allocation was also reported to be supporting the currency.
Finance Minister Katayama said at a post-Cabinet press conference that the policy for responding to the foreign-exchange market had not changed at all since the Japan-US coordinated intervention, and said the government would work to maintain an orderly foreign-exchange market. He avoided commenting on the appropriate level for the exchange rate, but made clear that the policy of coordinated intervention would remain in place.
The yen rose briefly into the ¥153 range against the dollar in morning trading, approaching its highest level since February. Factors cited included the Bank of Japan’s interest-rate outlook, expectations of yen-bond purchases and pension-fund flows, while accumulated short-yen positions were being unwound.
As of 11:09 a.m. on the same day, the yen was trading in the low ¥153 range. Speculation over a review of the GPIF’s asset allocation was also supporting the currency.
At a press conference following the G20 meeting, Finance Minister Katayama said that Japan and the United States shared the view that the coordinated intervention at the end of July would contribute to the stability of international financial markets. The government and the Bank of Japan carried out foreign-exchange intervention totaling ¥15.3993 trillion over the past month, on a monthly basis, one of the largest amounts on record. This includes the coordinated intervention in the New York market on 31 July.