Japan’s finance minister Satsuki Katayama said it is “clear” that volatile swings in the foreign exchange market and rapidly weakening yen aren’t “moving based on fundamentals”.
When she made her comments during a Fuji TV program in Japan, Katayama said she wouldn’t comment on specific yen levels.
In the past, she said it’s important for the yen to move stably reflecting fundamentals.
The issuance of Japanese government bonds is being managed, and credit default swaps and ratings remain unchanged, Katayama said.
She also added that she doesn't think there will be a snap election as there are other priorities, including the debate over taxes and fiscal 2026.
According to Bloomberg, the yen has weakened by around 6% against the U.S. dollar in the past three months.
Katayama reiterated that a currency intervention remains possible to address the yen's volatile moves, in line with the Japan-U.S. joint statement in September, which said exchange rates should be market-determined.
