Japan’s Katayama renews FX warnings after US CPI heats up

Published Thu, Oct 15, 2026 · 03:45 PM

JAPANESE Finance Minister Satsuki Katayama warned speculators that she was prepared to take action in the currency market again if needed, after the yen touched its weakest level against the dollar this month following hotter US inflation figures.

She also said there has been no change in the stance of Washington and Tokyo since their joint intervention to prop up the yen in July.

“Our stance on foreign exchange remains completely unchanged from the message we sent when our two countries conducted coordinated intervention,” Katayama told reporters on Thursday morning (Oct 15) ahead of a Group of 20 meeting in Bangkok. “The US is here with us right now, and we will act without hesitation if necessary.”

Katayama’s remarks followed a weakening of the currency after US consumer price data on Wednesday showed the fastest inflation in five months.

The yen briefly touched 158.95 per dollar, but later pared its losses as US Treasury yields declined.

Japan’s finance minister is attending a series of international meetings where finance chiefs and central bankers are expected to discuss global challenges ranging from rising bond yields to financial risks posed by frontier artificial intelligence.

In terms of surging global bond yields, Katayama said that Japan is among the few advanced economies in a position to make a credible case for fiscal sustainability.

She said Prime Minister Sanae Takaichi and her administration have repeatedly made clear their commitment to steadily reduce the debt-to-GDP ratio and keep government bond issuance at appropriate levels.

“Not every country has made such commitments as explicitly as we have,” Katayama said. “We can speak clearly about our own fiscal responsibilities, and I would like to deliver that message firmly.” BLOOMBERG