Katayama Says Japan Ready to Act After Yen Hits 40-Year Low

June 30, 2026 - 06:43

Finance Minister Satsuki Katayama stated on Wednesday that Japan is prepared to take appropriate action in the currency market at any time, reaffirming her government's stance after the yen dropped to its weakest level against the U.S. dollar in nearly four decades. The yen briefly touched 160.80 per dollar, a level not seen since 1986, before slightly recovering.

Katayama's comments echoed her previous warnings, emphasizing that authorities are watching exchange rate moves with a high sense of urgency. She declined to specify what measures Tokyo might consider, but her remarks kept markets on alert for possible intervention. The yen's slide has been driven by the wide interest rate gap between Japan and the United States, as the Bank of Japan maintains ultra-low rates while the Federal Reserve keeps borrowing costs high.

Traders are now testing the resolve of Japanese policymakers after Tokyo spent roughly 9.8 trillion yen, or about 61 billion dollars, intervening in April and May to support the currency. Analysts say the latest drop increases pressure on the Bank of Japan to raise rates sooner than expected, possibly at its July meeting. For now, Katayama's warning signals that the government remains ready to step in if the yen's decline becomes too rapid or disorderly.