Japan's Katayama says principles of Japan-US FX intervention remain in place

Japanese Finance Minister Satsuki Katayama confirmed on Thursday that the principles guiding the joint currency intervention between Japan and the United States in July still hold, indicating Tokyo's willingness to engage in such coordinated action if required. Katayama informed reporters that these principles, as established post the July 31 intervention, remained active.

This intervention was reportedly aimed at curbing excessive volatility and disorderly market movements. Katayama declined to comment on specific foreign exchange levels. The Japanese yen has depreciated to below 158 per dollar following the Bank of Japan's decision to raise interest rates to a 31-year high on Friday, which did not sufficiently appease investors.

Japanese authorities performed rate checks in overseas markets on Friday, a routine that often precedes currency intervention, according to sources familiar with the situation. The yen briefly strengthened after these checks, but these gains were fleeting.