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Japan Signals Readiness to Act as Yen Slips Past 159

Tokyo frames the yen’s latest swings as speculative rather than grounded in fundamentals.

Overview

  • Finance Minister Satsuki Katayama said authorities will respond to excessive or speculative currency moves without ruling out any options.
  • Katayama reported discussing the yen’s depreciation with U.S. Treasury Secretary Scott Bessent and meeting G7 finance chiefs following her return from Washington.
  • Officials singled out sudden moves on Jan. 9 as inconsistent with fundamentals, escalating verbal intervention.
  • The yen briefly firmed after the remarks, having fallen below 159 per dollar to its weakest level since July 2024.
  • Atsushi Mimura warned of one-sided rapid moves and flagged volatility as the key concern as USD/JPY trades near the 158–160 range.