Japan’s Finance Minister Katayama Satsuki declines to comment on speculation that authorities intervened in the foreign exchange market after the yen briefly strengthened to the 157-yen-per dollar level overnight. 

L/ Tokyo

News script:

Japan’s Finance Minister Katayama Satsuki declined to comment on July 31 on speculation that authorities intervened in the foreign exchange market after the yen briefly strengthened to the 157-yen-per-dollar level overnight.

Q: “Some believe this was currency intervention. Was it?”

Katayama Satsuki, Japan’s Finance Minister: “I’m afraid I can’t comment on that this morning.”

Q: “Many market participants believe intervention took place.”

Katayama Satsuki, Japan’s Finance Minister: “We always respond with a strong sense of urgency.”

The yen weakened back to the 160-yen range later on the morning of July 31.

Market speculation has intensified that the Japanese government and the Bank of Japan intervened to support the currency.

Bloomberg also reported that Japanese authorities carried out currency intervention and that U.S. authorities conducted a so-called “rate-check,” a procedure often seen as a step that can precede intervention.

Vice Finance Minister for International Affairs Mimura Atsushi told reporters on the morning of July 31 that Japan believes it has received support from U.S. authorities that goes beyond “moral support,” suggesting close cooperation between the two countries.