Tokyo and Washington Ready to Intervene Again

Japan's Finance Minister Satsuki Katayama has signaled Tokyo's readiness to intervene in the foreign exchange market again, this time with Washington. The principles underpinning their coordinated currency intervention in July remain intact.

Katayama said that since the previous joint intervention in July, the principles have remained alive. This suggests that Japan and the US are prepared to take joint action if needed to counter excessive volatility and disorderly market moves.

The Japanese yen has weakened beyond 158 per dollar after the Bank of Japan's rate hike on Friday fell short of reassuring investors. The rate hike was a 31-year high, but it failed to convince markets that more aggressive tightening is on the way.