Japan Finance Minister Prepared to Act on Yen, Engages with US Authorities
Government Response to Yen Movements and Market Reactions
Official Statement on Currency Intervention
TOKYO, July 3 (Reuters) - Japanese Finance Minister Satsuki Katayama said on Friday the government will respond appropriately on currency movements, reiterating her warnings as traders braced for possible intervention from the Japanese authorities.
"Our stance has not changed. We will respond appropriately at any time as needed," Katayama said at a regular press conference when asked about the yen's persistent weakness.
Collaboration with US Authorities
Katayama also emphasised that the government has been in close contact with U.S. authorities on foreign exchange issues, "even when the U.S. is on holiday."
Market Reactions and Yen Performance
Recent Yen Movements
The yen jumped suddenly against the dollar on Thursday, with traders alert to the prospect of intervention and jumpy about a possible new approach to official currency-buying.
Traders thought the move may have been too small to suggest intervention, but the yen soon caught a further boost as softer-than-expected U.S. jobs figures sent the dollar lower.
Current Exchange Rate
The yen traded at 161.2 per dollar on Friday which compares with a 40-year low of 162.84 hit earlier this week.
Japanese Government Bond Yields and Fiscal Health
Government Commitment to Bond Market Stability
On the topic of surging Japanese government bond (JGB) yields, Katayama stressed the government's commitment to maintaining confidence in the bond market and the sustainability of public finances.
Investor Concerns Over Fiscal Health
Benchmark JGB yields jumped to a near 30-year high on Friday with investors concerned about the fiscal health of the Japanese economy.
(Reporting by Makiko Yamazaki and Tom Westbrook; Editing by Jacqueline Wong and Edwina Gibbs)
