Finance Minister Katayama (片山) said the response to foreign exchange has remained completely unchanged since the Japan-U.S. coordinated intervention, while the yen temporarily rose to the low ¥153 range. The government and the Bank of Japan carried out the largest intervention on record during this period.
At a press conference after a Cabinet meeting, Finance Minister Katayama (片山) said the policy for responding to current foreign-exchange market conditions has remained completely unchanged since the Japan-U.S. coordinated intervention. He said the government would work to maintain orderly markets and maintain close communication with the U.S. Treasury, but declined to comment on specific exchange-rate levels.
The yen rose to as high as ¥153.38 to the dollar during the morning, reaching a new high since February. Factors cited as encouraging the unwinding of yen-selling positions included expectations of a Bank of Japan rate hike and speculation that pension funds would increase their purchases of yen bonds. The yen had temporarily weakened to ¥160.39 last week. Expectations that the Government Pension Investment Fund (GPIF) would review its asset allocation have also supported the yen.
At a press conference after the G20, Finance Minister Katayama (片山) said Japan had shared with the United States its view that the Japan-U.S. coordinated intervention at the end of July would contribute to stability in international financial markets. He attended the G20 meeting of finance ministers and central bank governors and held a bilateral meeting with U.S. Treasury Secretary Scott Bessent on the sidelines.
The government and the Bank of Japan carried out ¥15.3993 trillion in currency intervention over the one-month period through 26 August, the largest monthly amount on record. This included the Japan-U.S. coordinated intervention conducted in the New York market on 31 July.