Overview
- Katayama said Tokyo is prepared to take decisive action and will use every possible measure to counter renewed yen weakness.
- She stated that intervention is included as an option under the U.S.–Japan framework and did not rule out coordinated action with Washington.
- Following talks in Washington, Katayama and U.S. Treasury Secretary Scott Bessent shared the view that the yen’s slide is excessive relative to economic fundamentals.
- The currency traded in the upper 158 to 159 per dollar range on Friday, briefly touching about 157.97 after fresh official warnings before rebounding.
- Officials cite wide U.S.–Japan rate differentials and expectations of expansionary fiscal policy as key drivers, while emphasizing that they prefer verbal warnings and reserve intervention for disorderly moves.