Japanese Finance Minister Katsunobu Kato stated on Tuesday that the government will continue to monitor foreign exchange (FX) market developments closely, emphasizing the importance of currency movements that reflect economic fundamentals.
Key comments from Kato
- It is important for currencies to move in a stable manner, reflecting fundamentals.
- Closely watching FX moves.
- Will thoroughly monitor for excessive fluctuations and disorderly movements in the forex market.
- New LDP leader Sanae Takaichi will implement appropriate policies in line with Japan’s fiscal situation.
Market reaction
At the time of writing, the USD/JPY pair was trading 0.07% higher on the day at 150.45, reflecting modest yen weakness as traders assessed the potential for government intervention in the FX market.
