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

Japanese Finance Minister Satsuki Katayama revealed on Thursday that the underlying principles for the joint currency intervention between Japan and the United States, conducted in July, remain in effect. This statement suggests Japan's willingness to engage in similar coordinated actions in the future if required. The July 31 intervention aimed to mitigate excessive volatility and disorderly market movements.

However, Katayama declined to comment on specific foreign exchange rates. The Japanese yen has depreciated to levels below 158 per dollar following the Bank of Japan's decision to raise rates to a 31-year high, which did not sufficiently reassure investors about potential further tightening measures. Japanese authorities conducted rate checks in overseas markets on Friday, a customary step before potential currency intervention, but the yen's brief strengthening after the checks was short-lived.