Japanese Finance Minister Satsuki Katayama said Japan will take appropriate action as needed to address currency volatility driven by Middle East tensions [1].
This stance signals a potential readiness for market intervention to stabilize the yen. Speculative pressure and fluctuating crude oil prices have created an unstable economic environment that threatens domestic price stability and financial markets [1, 2].
Katayama said during and after the G7 finance ministers' meeting held April 10, 2026 [2]. She said that the yen had temporarily reached a rate of 159 per U.S. dollar [1]. The minister said that the G7 shares a consensus on avoiding the prolongation of instability caused by the situation in Iran, which she described as a major issue for every nation [2].
Regarding the specific movements of the currency, Katayama said, "Because there are issues in the Middle East and speculators, as I have said before, since those movements are continuing, we will respond appropriately at any time as necessary" [1].
Beyond monetary concerns, the finance minister said that G7 members agreed to finalize measures against cyberattacks that exploit artificial intelligence [1, 2]. These security frameworks are expected to be completed in time for the leaders' summit scheduled for June [1, 2].
Katayama said that the G7 will continue to coordinate closely to manage these intersecting crises. She said that the group will hold further meetings as necessary to ensure global economic stability [1].
“"We will respond appropriately at any time as necessary."”
The Japanese government is signaling a low threshold for currency intervention to prevent a rapid depreciation of the yen. By linking currency volatility to geopolitical instability in the Middle East and speculative trading, Katayama is framing the yen's weakness as an external shock rather than a purely domestic policy failure, while simultaneously aligning Japan's economic security with G7 goals regarding AI-driven cyber threats.
