Katayama Signals Strong Yen Is Here to Stay

Japanese Finance Minister Kazuo Katayama has been discussing the strong yen with foreign investors. In a recent call, he spoke about the desirability of a strong currency and how it can benefit Japan's economy.

Katayama also expressed his views on defense spending, stating that 2% of GDP is 'not enough' to meet the country's needs. He emphasized the importance of independence for the Bank of Japan (BOJ) in making monetary policy decisions.

Market participants had been selling off the yen due to concerns about its value, but Katayama suggested that this excessive selling may be corrected soon. He acknowledged that markets are 'misunderstanding' the weak yen and reassured investors that he will take bold action if necessary to stabilize the currency.