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Japan Signals Readiness to Defend Yen as Dollar Nears ¥160

Officials say cash and maturing assets will fund action.

Overview

  • At the G7 meeting in Paris, Finance Minister Satsuki Katayama said Japan stands ready to act against sharp currency swings at any time.
  • Central bank data suggest Tokyo has spent close to ¥10 trillion since April 30 to buy yen, marking its first return to the market in nearly two years.
  • The yen has given back much of its early‑May bounce, with the dollar trading near ¥159 to ¥160 as traders probe where authorities will step in.
  • A Finance Ministry official said Japan will avoid selling U.S. Treasuries and will use cash, maturing assets, and interest income to prevent pushing U.S. yields higher.
  • Under Japanese law, the Finance Ministry decides on currency interventions and the Bank of Japan executes the trades as its agent.