Japanese Finance Minister: Decisive action will be taken to address yen weakness if necessary

Japan has obtained the “understanding” of its G7 peers, Katayama told reporters after meeting with G7 finance ministers in Paris on Tuesday, stating, “If necessary, we will take decisive action.” This was the first G7 meeting since Japan was suspected of implementing a series of interventions aimed at supporting the yen at the end of last month. The G7 communiqué reaffirmed long-term commitments, including not targeting exchange rates as policy objectives and recognizing that excessive exchange rate volatility could adversely affect the economy—wording that expressed support for Japan’s stance. After Katayama’s remarks, the yen strengthened against the US dollar to around 158.82. Previously, the yen had once fallen to its lowest level since April 30, when the Japanese government conducted its first currency intervention of 2024.