Japan Finance Minister Says in Close Contact With U.S. on FX; Yen Strengthens to 153 Against Dollar

Japan said it will remain in close contact with the U.S. Treasury over the yen’s recent strength and work to ensure orderly moves in the foreign-exchange market.

Bloomberg reported on September 8 that Japanese Finance Minister Satsuki Katayama told a news conference that Tokyo’s position had not changed at all since the joint U.S.-Japan market intervention, citing comments made at an August 3 press conference in Japan and a Washington statement by U.S. Treasury Secretary Scott Bessent.

She added that Japan will continue close communication with the U.S. Treasury and seek to ensure orderly movements in the foreign-exchange market.

The yen has strengthened rapidly as expectations grow for another interest-rate increase by the Bank of Japan. In Tokyo foreign-exchange trading on the morning of September 8, the dollar traded at about 153.58 yen. That marked a sharp rise in the Japanese currency from around 160 yen a dollar just a week earlier. More recently, the yen has continued to strengthen past the 155-per-dollar level even without additional market intervention by authorities.

Economic data released that day also reinforced expectations for a BOJ rate hike. Japan’s second-quarter gross domestic product growth was revised up to an annualized 1.4%, while wage growth in July reached its highest level in about 30 years.

About a month earlier, Japan injected 15.4 trillion yen, or about $101 billion, into the foreign-exchange market to support the yen. The U.S. also joined the effort at the time for the first time in 28 years. Even after the intervention, the dollar-yen rate stayed near 160 for a time, but the yen’s rally has accelerated this month as bearish bets against the currency were rapidly unwound.