Key Facts
• November 18: Finance Minister Satsuki Katayama addressed yen depreciation concerns.
• Tokyo market: Long-term interest rates hit 1.75%, highest in 17.5 years.
• Yen fell to 155 per USD, lowest since February 2025.
• Market fears: Large-scale economic measures may worsen fiscal health.
• Q3 GDP: Japan’s economy contracted for the first time in six quarters.
• Katayama cited U.S. high tariffs as a factor in export decline.
• Emphasized “responsible proactive fiscal policy” for economic stability.
Summary
Japanese Finance Minister Satsuki Katayama expressed concern over the yen’s sharp depreciation, citing speculative trading and market volatility. On November 18, Tokyo’s long-term interest rates reached 1.75%, a 17.5-year high, while the yen dropped to 155 per USD, its lowest since February 2025. Market fears of fiscal deterioration, driven by anticipated large-scale economic measures, have intensified pressure on Japanese bonds and the yen. Japan’s Q3 GDP contracted for the first time in six quarters, with exports impacted by U.S. high tariffs. Katayama emphasized the need for “responsible proactive fiscal policy” to stabilize the yen and government bonds, ensuring economic measures are well-calibrated to address current challenges.
