Japan’s Katayama: Warns of decisive action on speculation

Japan's Finance Minister Satsuki Katayama warned that officials are in close contact around the clock with their US counterparts over speculative moves that are keeping the Japanese Yen (JPY) weak. Katayama confirmed that there are no plans to alter Japan's currency swap lines with the US.

Katayama also flagged a visible increase in speculative activity linked to oil prices and vowed decisive action on speculation, citing an existing agreement with the US as the basis. Katayama stressed continued close coordination with the US and global financial authorities across multiple forums.

Market Reaction:

Katayama's comments represent a classic verbal intervention but do little to provide any respite to the JPY, with the USD/JPY pair holding steady just below the 160.00 psychological mark, up for the fifth consecutive day.