Japan pledges coordinated action to keep yen moves orderly after Fed hike

In a regular news briefing, Chief Cabinet Secretary Minoru Kihara said Japan will continue close coordination with the U.S. Treasury to preserve an orderly yen market after the Federal Reserve raised rates on Wednesday, prompting a broad dollar rally. The yen fell to roughly 155.50 against the dollar in Asian trading, easing from a seven-month peak of 152.89 that had been driven by speculation of faster Bank of Japan hikes.

Kihara stressed that Japan's policy has not shifted since the rare joint yen-buying intervention carried out on July 31, which had lifted the yen away from a 40-year low near 164. Finance Minister Satsuki Katayama echoed the commitment, saying the government will confront excessive currency swings and expects the BOJ to work closely with authorities to meet its 2% inflation target. Both officials were re-appointed in a cabinet reshuffle announced later that day. The BOJ is slated to raise its policy rate to 1.25% on Friday, a 31-year high, though analysts doubt the move will strengthen the yen without a hawkish outlook from Governor Kazuo Ueda.