The Japanese yen recorded its most significant daily increase in more than two weeks, rising 0.6% to 157.95 per dollar. This movement follows a warning from Finance Minister Satsuki Katayama regarding potential market intervention. The minister noted that US President Donald Trump discussed concerns over the weak yen with Japanese Prime Minister Sanae Takaichi during a recent meeting in New York.
The involvement of the White House distinguishes this warning from previous statements by Tokyo. Minister Katayama plans to coordinate with US Treasury Secretary Scott Bessent, who has expressed support for a stronger currency. Market strategists suggest that the risk of intervention may limit further weakness of the yen, as the currency approaches a potential turning point due to US-Japan cooperation.
The recent market activity follows a period where the dollar pushed toward the 160 yen level, a threshold traders monitor closely. This level recalls events from this summer when Japan and the US conducted coordinated yen-buying interventions. During the period ending August 26, Japan spent a record ¥15.4 trillion, approximately $97.4 billion, to support the currency.
While officials have not specified a trigger price for intervention, they emphasize concerns regarding the speed and volatility of currency fluctuations. The market currently views the 160 yen mark as the point where government action becomes probable. Previous rallies earlier this month were driven by expectations of monetary tightening by the Bank of Japan.
