<div id="readability-page-1">Japan’s Katayama said authorities are closely watching FX and in dialogue with the US, warning oil-driven volatility is impacting the yen and economy, keeping intervention risk in focus.Earlier:<ul><li>Japan's Finance Minister Katayama said to intensify communication with Bessent</li></ul>Summary:<ul><li>Japan Finance Minister Katayama said authorities are closely watching FX moves and have communicated this to the G7. </li><li> She confirmed discussions with US Treasury Secretary Bessent, agreeing to maintain close dialogue on currencies. </li><li> Katayama highlighted that oil market volatility is feeding into FX moves and impacting the broader economy. </li><li> She stressed that FX volatility is affecting livelihoods, reinforcing sensitivity to yen weakness. </li><li> She said she was not aware of any discussion on BOJ monetary policy during talks with Bessent. </li><li> Remarks reinforce ongoing vigilance and keep intervention risk in focus.</li></ul>Japan’s Finance Minister Satsuki Katayama reiterated the government’s heightened vigilance over currency movements, signalling continued concern about yen volatility as global energy markets remain unsettled by the Iran conflict.Speaking after international discussions, Katayama said Japan had informed its Group of Seven counterparts that it is closely monitoring developments in foreign exchange markets. She also confirmed holding talks with US Treasury Secretary Scott Bessent, with both sides agreeing to maintain close communication on currency issues.Her comments come as sharp swings in oil markets—driven by the ongoing Middle East conflict—spill over into foreign exchange markets, contributing to heightened volatility in the yen. Katayama emphasised that fluctuations in energy prices are not only affecting financial markets but are also feeding through to the real economy, impacting households and business conditions.The linkage between oil and currency moves has become increasingly important for Japan, a major energy importer, where higher oil prices can weigh on the trade balance and put downward pressure on the yen. Katayama’s remarks suggest authorities are acutely aware of these dynamics and remain prepared to respond if market moves become disorderly.At the same time, she sought to draw a clear line between fiscal and monetary policy responsibilities. When asked whether Bank of Japan policy had been discussed during her meeting with Bessent, Katayama said she was not aware of any such conversation, reinforcing the formal separation between government currency policy and central bank decision-making.The overall tone of her comments underscores a familiar message from Japanese authorities: that excessive or disorderly currency movements are undesirable and warrant close attention. While no explicit intervention warning was issued, the combination of G7 communication, bilateral engagement with the US and references to economic impact keeps the risk of policy action in focus.---Keeps intervention risk alive, particularly if yen weakness accelerates. Reinforces sensitivity to oil-driven FX moves, with USD/JPY likely to remain reactive to energy prices and policy signalling.</div>

Japan's Finance Minister Satsuki Katayama stated that authorities are closely monitoring foreign exchange (FX) movements due to oil market volatility impacting the yen and the economy. She confirmed ongoing discussions with US Treasury Secretary Scott Bessent, emphasizing the importance of maintaining dialogue on currency issues. Katayama highlighted that fluctuations in energy prices are affecting both financial markets and the real economy, reinforcing the need for vigilance regarding yen weakness. While no specific intervention was mentioned, the risk of policy action remains a concern as the situation evolves.

Investinglive

BP p.l.c.

Occidental Petroleum

Pro Ultr Yen

iShares US Oil Equip & Svcs

Pro Ultrshrt Yen

VanEck Oil Services ETF

ISHRS S&P Glb Engy

SPDR O&G Ex & Prd

VG Energy

SPDR O&G Equip

VanEck Oil Refiners ETF

Us Brent Oil

Pro Ultr Bloomberg Crude Oil

SPDR Energy Select

iShares US Oil & Gas Expl & Prod

Currencyshares JPY Trust

United States Oil Fund LP

Japan’s Katayama says closely watching FX as oil volatility hits yen