Japan Says Its Currency Coordination With Washington Will Not Change Whatever Tuesday's Midterms Bring
Finance Minister Satsuki Katayama said Monday that Tokyo and Washington remain closely aligned on currency policy regardless of the election outcome: 'We issued a joint statement together, and we will act in line with that.' Conditions, she said, have improved since the yen's slide to 160 per dollar.
One of Washington's closest partners put its election-week position on the record a day before Americans vote. Japanese Finance Minister Satsuki Katayama said on Monday that Tokyo and Washington would remain closely aligned on currency policy objectives regardless of the outcome of the US midterm elections, Reuters reported. Asked whether this week's elections could affect her government's approach to financial markets, Katayama said Japan would continue to be guided by its existing understanding with US authorities.
'We issued a joint statement together, and we will act in line with that,' she said at a regular press conference. 'If there are disorderly moves or excessive speculative movements, we will take action. We have been in constant talks with them and will continue to do so.' The talks she described are the standing channel between the two governments on currency markets - the arrangement that governs how the world's largest economy and one of its largest allies respond, together, when the yen or the dollar moves too fast.
Katayama said currency market conditions have improved since the yen's slide to 160 per dollar, though she declined to comment on current levels. 'I believe there is absolutely no wavering on either side in seeking to prevent excessive volatility, speculative moves and disorderly market developments, while pursuing our respective policy objectives,' she said. For Washington, the statement removes one variable from a week full of them: whoever controls Congress on Wednesday, the currency understanding between the two capitals stays where it was on Monday.
