Japan’s Aoki and Finance Minister Kato Express Concern Over Speculative FX Movements and Currency Stability Impacting JGB Issuance

Japan's Deputy Chief Cabinet Secretary Aoki and Finance Minister Kato have both expressed concerns regarding recent fluctuations and speculative activity in the foreign exchange (FX) market. Aoki emphasized the importance of currency movements reflecting economic fundamentals and maintaining stability to ensure smooth issuance of Japanese Government Bonds (JGBs). He also highlighted the government's intention to closely monitor the impact of interest rates on public livelihood. Similarly, Finance Minister Kato underscored the need for currencies to move stably in line with fundamentals and voiced worries about FX fluctuations driven by speculative actions. Both officials signaled a cautious approach toward FX market volatility to support economic stability.