Japan FinMin Katayama: Always prepared to respond appropriately as needed on forex

Japan’s Finance Minister Satsuki Katayama has reaffirmed the government’s readiness to respond to foreign exchange market movements as needed, emphasizing the importance of maintaining stability in currency rates. Speaking after a cabinet meeting on June 3, 2026, Katayama stated, “ready to respond to forex”. Her comments come as the yen approaches levels where intervention was previously conducted, trading near 159.96 to the dollar, close to the 160 threshold that triggered yen-buying operations in late April.

Katayama highlighted the complex environment influencing the yen, including the upcoming Bank of Japan (BOJ) policy meeting, the Japan-U.S. leaders’ meeting, and ongoing geopolitical tensions in the Middle East. The yen has faced downward pressure amid a dovish stance from BOJ Governor Kazuo Ueda and delay in U.S. Federal Reserve rate cuts. Authorities spent a record ¥11.73 trillion ($73.5 billion) in late April and early May to support the yen, with interventions occurring as currency weakened past 160 per dollar.

The government has also maintained coordination with U.S. officials on foreign exchange matters, with Treasury Secretary Scott Bessent and Katayama confirming their shared commitment to monitoring currency markets. While Katayama did not specify policy actions, she reiterated alignment with BOJ Governor Ueda’s views. The BOJ is expected to maintain its current policy stance at its June 16 meeting, with market expectations of a rate hike by April standing at roughly 58%.