BNY’s Geoff Yu highlights rising Japanese Yen intervention risk after Finance Minister Satsuki Katayama’s call with U.S. Treasury Secretary Scott Bessent. Japan and the U.S. reaffirmed a shared stance that bold FX action remains possible, even as Katayama avoided commenting on current levels. The report notes heightened market focus on USD/JPY as it trades near a 40-year low, alongside broader discussions on global markets and Iran.

Katayama call keeps FX option open

"Japan’s Finance Minister Satsuki Katayama said she held a phone call lasting nearly an hour with U.S. Treasury Secretary Scott Bessent on Monday, following last week’s G7 meeting in France."

"She said Japan and the U.S. still share a “solid understanding” that bold action can be taken if necessary on foreign exchange, signaling that the bilateral stance on intervention remains unchanged."

"Katayama said cooperation and alignment between the two sides have strengthened, but declined to comment on current FX levels."

"The remarks heightened market attention regarding possible Japanese intervention as the yen hovered near a 40-year low."

"The discussion also covered global financial markets and recent developments in Iran and the Strait of Hormuz."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)