Japan's Katayama: Getting closer to taking decisive step in FX market

Japanese Finance Minister Satsuki Katayama said on Thursday that they are moving closer to taking a decisive action in the foreign exchange markets, as reported by Reuters.

The Japanese Yen suffered heavy losses against the US Dollar (USD) on Wednesday and continued to weaken on Thursday, with the USD/JPY pair climbing to its highest level since July 2024 above 160.70. The Federal Reserve's (Fed) hawkish policy hold and global inflation fears, due to rising crude Oil prices, help the USD outperform its rivals.

Market reaction

With the immediate reaction to Katayama's verbal intervention, USD/JPY corrected lower and was last seen trading near 160.00, losing about 0.25% on the day.