Japan, US remain aligned on FX policy to foster stable markets, Katayama says

TOKYO, Sept 8 - Japanese Finance Minister Satsuki Katayama affirmed on Tuesday that Japan and the United States continue to hold a unified perspective on foreign exchange policy, vowing to maintain consistent communication in order to foster market stability. According to Katayama, Tokyo's monetary policy has remained unchanged since the coordinated intervention undertaken by Japan and the U.S. to support the yen in late July.

Despite the recent surge in the value of the yen, Katayama emphasized the government's commitment to vigilance. She stated that Japan will persist in maintaining regular dialogue with the U.S. Treasury to ensure the smooth functioning of the market, underscoring her engagement in discussions during recent Group of 20 meetings and additional occasions.

The recent appreciation of the yen, which reached a seven-month peak, can be attributed to market participants reassessing the currency's future prospects, influenced by forecasts of accelerated Bank of Japan tightening and an increasing inclination for Japanese investors to bring funds back home.