Satsuki Katayama: Japan to Act as Needed as Yen Briefly Falls Below 160

Japan's Finance Minister Satsuki Katayama said Japan would continue close coordination with the United States and take appropriate action if necessary amid sharp, one-way currency moves. According to Sina Finance, the yen briefly fell below 160 against the dollar overnight, reviving speculation that Japan might intervene to support its currency. The yen was quoted at 159.84 against the dollar in early Tokyo trading on Friday. Japan has intervened in the foreign exchange market several times earlier this year. The interest rate gap continues to weigh on the yen: Japan's benchmark rate is 1.25%, more than 2.5 percentage points below the Fed's policy rate. Katayama reiterated that Japan and the United States share the same position on exchange rates. She said U.S. Treasury Secretary Bessent has repeatedly expressed a desire for a strong yen that reflects economic fundamentals, a view also expressed by the two countries' leaders at a summit.