Katayama talks up yen intervention risk (as usual) as crude volatility weighs currency

Japan Finance Minister Satsuki Katayama warned markets that Tokyo is prepared to take decisive FX action, coordinated with the United States, to curb speculative yen weakness as crude oil volatility from the Iran conflict pushes the yen toward the psychologically important 160 per dollar level. The remarks are aimed at slowing momentum selling of the yen and were coupled with confirmation of continuous contact with U.S. Treasury counterparts and G7 partners. Markets face dual risks today: verbal/fiscal intervention signals from the finance ministry and a Bank of Japan rate decision (policy rate widely expected at 0.75%) and Governor Ueda’s press conference, which could amplify volatility. Reports that Japan is even considering using FX reserves to take short positions in crude futures — a controversial and high‑risk option — underscore the scale of the challenge. Overall, the comments increase the likelihood of near‑term yen support but leave substantial uncertainty for FX and energy markets.