Japan finance minister says ready to respond appropriately on forex

June 3, 2026 - 07:37

TOKYO, June 3 - Japanese Finance Minister Satsuki Katayama stated on Wednesday that the government is prepared to take appropriate measures in the foreign exchange market, issuing a fresh warning as the yen continued its decline past key levels. Speaking to reporters, Katayama emphasized that authorities are watching currency movements with a heightened sense of urgency and will not rule out any options to counter excessive volatility.

The remarks come as the yen slipped against the dollar, raising concerns among policymakers about the impact on import costs and the broader economy. Katayama refrained from specifying whether intervention was imminent but stressed that orderly market conditions are essential. "We are ready to respond appropriately," she said, echoing language often used by Tokyo to signal potential action without committing to a specific course.

Market participants interpreted the statement as a verbal warning aimed at discouraging speculative bets against the yen. Japan has historically intervened in currency markets to curb sharp moves, though such steps are typically reserved for extreme fluctuations. The finance minister's comments underscore the delicate balance Tokyo faces between allowing market forces to operate and preventing disruptions to trade and inflation. Analysts noted that further yen weakness could prompt more direct action, especially if it accelerates beyond fundamental drivers.