USD/JPY: Intervention risk rises with Yen slide – BNY

BNY’s Head of Markets Macro Strategy Bob Savage reports Japan’s Finance Minister Satsuki Katayama is monitoring markets with “utmost vigilance” and stands ready to act against sharp FX moves as USD/JPY trades above 157. Authorities stress coordination with overseas counterparts and focus on securing energy supplies.

Tokyo signals readiness to act on FX

"Japan’s Finance Minister Satsuki Katayama has warned that authorities are monitoring financial markets with utmost vigilance and will take all necessary measures in response to sharp FX movements, as volatility intensifies following U.S. and Israeli attacks on Iran."

"The yen traded at around 157.52 per dollar on Tuesday, after breaching 157 for the first time since early February."

"That heightened speculation about possible intervention under a joint U.S.-Japan statement that includes FX action among policy options."

"Katayama said the government would coordinate closely with overseas authorities and seek to minimize economic disruption. She also stressed efforts to secure stable energy supplies, with Japan sourcing around 90% of its oil from the Middle East, while LNG stockpiles stand at about three weeks and roughly 4% of imports come from Qatar."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)