Japan Officials Toughen Tone on Yen as USD/JPY Holds Near 158

Key Facts

1Economy Minister Kiuchi stated Japan is no longer in deflation and does not require excessively loose monetary policy.

2Finance Minister Katayama reiterated that Japan and the U.S. stand ready to act decisively against excessive currency volatility.

3Markets see a Bank of Japan rate hike possible in December and more likely by March to narrow the gap with the Fed.

Economy Minister Kiuchi stated that Japan is no longer in deflation and does not require excessively loose monetary policy. Finance Minister Katayama reiterated that Japan and the United States stand ready to act decisively against excessive currency volatility, according to reporting by investinglive.com.

Markets see a Bank of Japan rate hike possible in December or March to narrow the policy gap with the Federal Reserve, Reuters reported. This coordinated verbal intervention comes as the Yen faces pressure from high U.S. yields and oil prices exceeding $100, which have kept the USD/JPY pair holding near the 158 level.