Japan finance minister Katayama declined to comment on specific FX levels and
said the government is prepared to take appropriate measures against currency
volatility, remains in close contact with US authorities, and views monetary
policy as the Bank of Japan’s remit while expecting close BOJ-government
communication. A government spokesman echoed no comment on FX levels, reiterated
authorities stand ready to act in FX markets, said monetary policy is under the
BOJ and rates are market-determined, and said markets are being watched with
high urgency. The BOJ’s relative silence this week is linked to market
expectations of a end‑July rate hike. Market participants say Tokyo’s tactics
may have shifted toward “raid‑style” intervention: Katayama’s recent language is
more restrained than April’s bold warnings, and the Ministry of Finance could
opt for surprise USD selling/JPY buying in low‑liquidity windows (for example
around the US July 4 holiday).
