FX.co ★ Yen Rises on Finance Minister Remarks

The Japanese yen experienced an appreciation, exceeding 154 per US dollar on Tuesday, recovering slightly from its nine-month low. This movement occurred following a statement from Finance Minister Satsuki Katayama, who emphasized that authorities are closely observing the increasing volatility in the foreign exchange markets with intense vigilance, cautioning against abrupt, unidirectional currency fluctuations. Back in March, Katayama had proposed that the yen's fair value ranged between 120 and 130 per dollar but subsequently withdrew that assessment upon taking office. Concurrently, Prime Minister Sanae Takaichi highlighted that Japan has yet to achieve sustainable inflation driven by wage growth, signaling prudence regarding additional interest rate hikes. In a parliamentary session, she pointed out that consumer inflation hovers near 3%, mainly due to high food prices, while indicating that the nation is still "midway" towards realizing consistent price growth fueled by increased wages. Last week, the Bank of Japan maintained its interest rates, with Governor Kazuo Ueda expressing concerns that global trade policies might negatively impact economic growth and corporate profits.