Japan Reaffirms FX Policy as Yen Rallies to Seven-Month High

In late July, Japan and the United States carried out a coordinated intervention to support the yen after a prolonged period of weakness near ¥160 per dollar. The effort, the first U.S. backing of the yen in 28 years, spent roughly ¥15.4 trillion (about $101 billion) but had limited impact until early September.

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• On the morning of the briefing, the yen was trading around ¥153.58 per dollar, a sharp move from the ¥160 level seen a week earlier.

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• The dollar fell to ¥154.05 on September 7, the lowest yen-dollar rate since February.

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• Revised second-quarter GDP showed an annualized 1.4 % increase, and July wages rose at the fastest pace in almost three decades, both bolstering expectations of Bank of Japan rate hikes.

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Finance Minister Satsuki Katayama emphasized that Japan’s stance on foreign-exchange markets remains unchanged since the July coordinated intervention. She said the government will keep close communication with U.S. Treasury Secretary Scott Bessent and other counterparts to promote orderly market movements. Katayama also noted that the recent yen appreciation aligns with data supporting a tighter monetary policy stance by the Bank of Japan.

Japan, US remain aligned on FX policy to foster stable markets, Katayama says

• “As I said at a press conference in Japan on August 3 and Secretary Bessent also issued a statement in Washington, our approach has not changed at all since Japan and the US conducted coordinated intervention,” — Satsuki Katayama, finance minister

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• “We will continue to maintain close communication with the US Treasury and work to ensure an orderly foreign exchange market,” — Satsuki Katayama, finance minister

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• “Our policy stance has not changed at all since the Japan-US coordinated intervention (to prop up the yen in late July),” — Satsuki Katayama, finance minister

Japan, US remain aligned on FX policy to foster stable markets, Katayama says

These remarks collectively signal that Tokyo intends to maintain its current policy framework while monitoring the yen’s rapid appreciation.

Japan, US remain aligned on FX policy to foster stable markets, Katayama says