Rising US inflation hits the yen, and Japan's finance minister once again warns speculators that they will not hesitate to interfere with the exchange rate if necessary

The Zhitong Finance App learned that Japan's Finance Minister Katayama Satsuki issued a warning to market speculators, saying that if necessary, Japan is ready to enter the market again to interfere in the foreign exchange market. Previously, the latest US inflation data was higher than expected, driving the exchange rate of the yen against the US dollar to hit a phased low this month.

At the same time, she said that since the US and Japan joined forces to support the yen in July of this year, the positions of Tokyo and Washington on the exchange rate issue have not changed.

Before attending the Group of Twenty (G20) meeting in Bangkok on Thursday morning, Katayama Satsuki told reporters: “Our position on the foreign exchange issue is completely consistent with the signals conveyed by the two countries during the joint intervention. The US side is currently in agreement with us, and we will not hesitate to act if necessary.”

The background of Katayama Satsuki's statement is that the CPI data released by the US on Wednesday recorded the highest level of inflation in five months, further weakening the yen. On the same day, the yen exchange rate once fell to 158.95 yen per dollar, then the decline narrowed as US bond yields declined.

During this visit, Katayama Satsuki will attend a series of international financial conferences. Finance ministers and central bank governors of participating countries are expected to discuss multiple global issues, including rising global bond yields and financial risks brought about by cutting-edge artificial intelligence (AI).

Referring to the recent surge in global bond yields, Katayama Satsuki pointed out that among the major developed economies, Japan is one of the few countries that can convincingly demonstrate fiscal sustainability. She stressed that Prime Minister Takaichi Sanae and her cabinet have made clear promises many times to steadily reduce debt as a share of GDP and keep the scale of government debt issuance within a reasonable range.

“Not all countries can make such a clear commitment as we do,” Katayama Satsuki said. “We can clearly state our financial responsibilities, and I want to firmly convey this signal.”