Select Language

Japan's Katayama: Stresses the need to stabilize weak Yen

Breaking news

Japan's Katayama: Stresses the need to stabilize weak Yen

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.10.22 16:44
Japan's Katayama: Stresses the need to stabilize weak Yen

update 2025.10.22 16:44

Japan's Finance Minister Satsuki Katayama signals that the government will allow the Bank of Japan (BoJ) to work independently. Katayama denies commenting on the outlook of forex rates and the monetary policy.

Additional comments

I will aim for both economic growth, financial consolidation.

Will pursue fiscal and economic policies while balancing with fiscal prudence.

Too early to talk about the size of the supplementary budget right now.

It's up to the BoJ on the specifics of monetary policy.

We need the BoJ and government cooperation to have effective economic policies.

No comment on BoJ interest rate.

Cannot say Japan has exited deflation fully.

Net debt-to-GDP ratio is enough as a key fiscal gauge.

Cutting sales tax shouldn't be handled lightly.

I cannot comment on forex rates.

Generally speaking, a weak yen boosts the cost of food, so we need to be quick to launch measures to cushion the impact.

"Takaichi trade" has calmed down somewhat.

Market reaction

The comments from Japan's Katayama have not impacted the Japanese Yen (JPY) significantly. At the time of writing, the USD/JPY trades 0.1% down to near 151.80.

Japanese Yen FAQs

The Japanese Yen (JPY) is one of the world's most traded currencies. Its value is broadly determined by the performance of the Japanese economy, but more specifically by the Bank of Japan's policy, the differential between Japanese and US bond yields, or risk sentiment among traders, among other factors.

One of the Bank of Japan's mandates is currency control, so its moves are key for the Yen. The BoJ has directly intervened in currency markets sometimes, generally to lower the value of the Yen, although it refrains from doing it often due to political concerns of its main trading partners. The BoJ ultra-loose monetary policy between 2013 and 2024 caused the Yen to depreciate against its main currency peers due to an increasing policy divergence between the Bank of Japan and other main central banks. More recently, the gradually unwinding of this ultra-loose policy has given some support to the Yen.

Over the last decade, the BoJ's stance of sticking to ultra-loose monetary policy has led to a widening policy divergence with other central banks, particularly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Dollar against the Japanese Yen. The BoJ decision in 2024 to gradually abandon the ultra-loose policy, coupled with interest-rate cuts in other major central banks, is narrowing this differential.

The Japanese Yen is often seen as a safe-haven investment. This means that in times of market stress, investors are more likely to put their money in the Japanese currency due to its supposed reliability and stability. Turbulent times are likely to strengthen the Yen's value against other currencies seen as more risky to invest in.

 

 


Date

Created

 : 2025.10.22

Update

Last updated

 : 2025.10.22

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

Gold extends losses ahead of key US inflation report

Gold price slides over 1.50% on Wednesday after plummeting more than 5% on Tuesday in its biggest daily loss in five years as traders brace for the release of the latest inflation report in the United States (US). At the time of writing, XAU/USD trades at $4,050 after reaching a high of $4,161.
New
update2025.10.23 03:06

USD/CHF steadies on trade optimism, Swiss deflation pressures

The USD/CHF pair is down 0.10% on Wednesday, trading around 0.7950 at the time of writing, after bouncing from the 0.7900 area earlier this week.
New
update2025.10.23 02:05

AUD/USD rises modestly on trade optimism as eyes turn to PMI, US inflation

AUD/USD trades slightly higher around 0.6500 on Wednesday at the time of writing, up about 0.10% for the day. The pair benefits from a renewed risk-on mood, as investors welcome more constructive signals on the trade front between the United States (US) and China.
New
update2025.10.23 00:53

EUR/USD Price Forecast: Euro finds footing as US Dollar slips from one-week highs

The Euro (EUR) edges higher against the US Dollar (USD) on Wednesday, snapping a three-day losing streak as the Greenback loses momentum. At the time of writing, EUR/USD is trading around 1.1611, bouncing off the intraday low near 1.1576.
New
update2025.10.23 00:52

GBP/USD steady near 1.3360 post soft UK CPI

GBP/USD holds firm during the North American session after the latest inflation report in the Great Britain, triggered some weakness on Sterling as expectations for further easing by the Bank of England, increased. The pair trades at 1.3362 virtually unchanged after diving to 1.3305 post CPI data.
New
update2025.10.23 00:47

EUR/JPY steadies near 176.00 as Japan's stimulus and BoJ-ECB divergence weigh

The Euro (EUR) steadies against the Japanese Yen (JPY) on Wednesday, trading around 176.26 after snapping a four-day losing streak on Tuesday.
New
update2025.10.22 23:38

EUR/CHF rebounds from 11-month low amid ECB, SNB policy signals

The Euro (EUR) steadies against the Swiss Franc (CHF) on Wednesday, recovering after briefly hitting an 11-month low near 0.9205 on Tuesday. At the time of writing, EUR/CHF trades around 0.9240, as the Euro stages a mild technical rebound from oversold conditions.
New
update2025.10.22 22:32

EUR/USD extends loses with ECB's Lagarde, Fed speakers on focus

EUR/USD has retraced previous gains on Wednesday, to extend its decline to one-week lows below 1.1600, trading at 1.1586 at the time of writing.
New
update2025.10.22 20:59

Gold declines as profit taking and firmer US Dollar drive losses

Gold (XAU/USD) extends its decline on Wednesday, losing further ground after Tuesday's sharp correction from record highs, as improving risk sentiment kept buyers on the sidelines.
New
update2025.10.22 20:47

WTI extends gains above $58.00 on hopes of a US-China deal

Crude prices are trading higher for the second consecutive day on Wednesday.
New
update2025.10.22 20:45

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel