Japan Finance Chief Vows To Address Forex Volatility

New Finance Minister Katsunobu Kato has announced that Japan will implement "necessary responses" to address recent volatility in the foreign exchange market and mitigate the negative impact of sharp currency movements on corporate activity and households, as reported by Kyodo News.

Kato, a former Finance Ministry bureaucrat, emphasized the government's desire for the bank to "thoroughly communicate with the markets." I Photo:  首相官邸ホームページ

Kato made this statement during a group interview with media outlets, including Kyodo News, after assuming his position last week under Prime Minister Shigeru Ishiba.

Earlier that day, the dollar rose to approximately 149.10 yen, its highest level since mid-August, following solid US employment data that dampened expectations of further significant interest rate cuts by the Federal Reserve.

When asked about the Bank of Japan's monetary policy outlook, Kato expressed his expectation that the central bank would continue targeting "stable and sustainable inflation of 2%."

Kato, a former Finance Ministry bureaucrat, emphasized the government's desire for the bank to "thoroughly communicate with the markets." The weak yen remains a major challenge for the Ishiba administration, as it raises import prices and increases the cost of living, according to a report from Mainichi Japan.