Katayama says Takaichi respects BOJ independence, ready to act on yen
Japan's finance minister also says Takaichi told Trump an undervalued yen is problematic
Published
Japan's Finance Minister Satsuki Katayama said Prime Minister Sanae Takaichi is not a reflationist and respects the Bank of Japan's independence. He said Takaichi will not hesitate to take bold action on the yen if needed. Katayama also said Japan's defense policy is not determined by US pressure.
The dollar rose 0.42% to 158.96 yen, touching 158.98, a fresh nine-week high. Japan's 10-year government bond yield rose 8 basis points to 3.055%, its highest level since September 1996.
Katayama has previously said Takaichi told President Trump that an undervalued yen is problematic, and that Trump shared concerns about the currency's weakness.
Katayama's comments come after weeks of mixed signals from Tokyo about the government's relationship with the central bank. The Bank of Japan has already raised its policy rate to 1.25% and signaled flexibility on further moves. His remarks leave that near-term policy path largely unchanged, but they remove uncertainty about political pressure that could have complicated coordination between the government and the central bank.