Japan will not rule out coordinated intervention with US to support yen
Japan’s Finance Minister Satsuki Katayama warned that Tokyo may take action against yen weakness as it hits a 1.5-year low. The yen rose following the news.
Insights:
Finance Minister satsuki katayama of Japan 
JPannounced on Friday that the government would not rule out any options to counter the ongoing weakness of the US Dollar / Japanese Yen , including the possibility of coordinated intervention with the United States 
US. Following the statement, the yen appreciated by 0.37% to reach 158.08 against the dollar. This explicit policy signal arrives as the Japanese currency is set for its third consecutive week of declines, having slid to a 1.5-year low earlier in the week.
JPannounced on Friday that the government would not rule out any options to counter the ongoing weakness of the US Dollar / Japanese Yen , including the possibility of coordinated intervention with the United States US. Following the statement, the yen appreciated by 0.37% to reach 158.08 against the dollar. This explicit policy signal arrives as the Japanese currency is set for its third consecutive week of declines, having slid to a 1.5-year low earlier in the week.The announcement comes at a pivotal moment for Japanas Prime Minister sanae takaichi is expected to dissolve parliament to set up a snap election early next month. Foreign exchange markets have been reacting to reports of the lower house dissolution and expectations of fiscal stimulus from the administration of sanae takaichi, which have fueled depreciation pressure on the yen. Additionally, the Bank of Japan is scheduled to meet for a policy decision during the upcoming week. While the central bank's direction remains a focus, some policymakers within the Bank of Japan have indicated they see scope to raise interest rates sooner than markets currently expect.
