Japan’s Finance Minister Katsunobu Kato reaffirmed the government’s commitment to a market-driven approach in determining financial movements during a news briefing on Tuesday.
“We will respond appropriately, bearing in mind that the market should be allowed to decide market moves,” Kato stated, signaling a hands-off stance regarding currency fluctuations and bond yields.
His remarks came after the yield on Japan’s 40-year government bond briefly surged to a record high. Kato refrained from commenting on the reasons behind the rising yields, emphasizing that doing so could influence market dynamics.
Market Reaction
Following Kato’s comments, the USD/JPY pair remained near two-week highs, trading around 149.50, up 0.17% on the day. Traders continue to monitor developments in Japan’s bond market and broader economic policies for potential implications on the yen’s movement.
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