Japan and US Coordinate Currency Market Approach Amid Yen's Strong Surge

Japan and the US are maintaining close communication to ensure orderly exchange-rate movements in the currency market, according to Finance Minister Satsuki Katayama. The coordinated approach between Tokyo and Washington remains unchanged since the intervention at the end of July aimed at supporting the yen.

Katayama stated that Japanese authorities remain vigilant despite the recent significant strengthening of the yen, which rose to its highest level in seven months.

The strengthening of the yen is attributed to market participants revising their outlook for the currency amid expectations of faster monetary-policy tightening by the Bank of Japan and increased bets on Japanese investors repatriating funds to the country.