Japan Leans on Washington to Justify Yen Intervention

Japan's Finance Minister Katayama is signaling readiness to take decisive action on the yen, citing the US Treasury's semi-annual currency report as justification. The report noted that excessive forex volatility is undesirable, a sentiment echoed in the joint US-Japan statement.

Katayama confirmed that Japan and the US are communicating closely around the clock, but declined to comment on specific currency levels that might trigger intervention.

The finance minister emphasized that Japan is ready to respond appropriately to currency moves at any time as needed, and separately stated that the country stands ready to take decisive action on the foreign exchange market.

These comments come after the US Treasury's report, which called for further Bank of Japan rate hikes and flagged substantial yen undervaluation. The report coincided with the yen hitting a 40-year low against the dollar, sparking speculation about potential intervention.