Yen Outperforms G-10 Peers After Japan Finance Minster Comments

The yen outperformed its Group-of-10 peers on Tuesday, strengthening after Japan’s Finance Minister Satsuki Katayama said in an interview that the government has a “free hand” to take bold action against the currency if its moves are out of line with fundamentals.

Japan’s currency appreciated as much as 0.5% to 156.28, rebounding from about a one-month low following the Bank of Japan’s rate decision last week. Meanwhile, the dollar extended its decline versus major peers for a second day.

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While the BOJ lifted its policy rate to a three-decade high on Friday, Governor Kazuo Ueda offered little clarity on the central bank’s future rate-hike path, helping trigger a slide in the currency toward levels that have led to interventions in the past. Japan’s chief currency official Atsushi Mimura this week that authorities will take appropriate measures against excessive foreign exchange market moves.