Japan's Finance Minister, Sakatsuki Katayama, has attempted to reassure investors while simultaneously issuing a warning, stating that communication with financial markets would occur on Monday if deemed necessary. As election results were being announced on Sunday, Ms. Katayama reiterated during a television appearance that she maintains close contact with US Treasury Secretary Scott Bessent. She indicated that both officials share the responsibility for maintaining stability in the US dollar-Japanese yen exchange rate movements. "Japan and the United States have a signed memorandum of understanding that clearly states we can take decisive action against rapid fluctuations that deviate from fundamentals," Ms. Katayama stated, adding, "That naturally includes intervention." The United States appears to have already provided support to Japan regarding the exchange rate. Significant volatility in the yen last month was initially thought to be potential intervention by Tokyo, but was later confirmed to be primarily action by the United States. Concerns over potential coordinated action or intervention by Washington and Tokyo have also deterred speculators. However, this strategy may not necessarily be effective again. This implies that renewed weakness in the yen could ultimately lead to government intervention, and Ms. Katayama's remarks may be aimed at delaying or preventing such a scenario. Ms. Katayama said she is closely monitoring financial markets while also emphasizing the commitment to responsible fiscal policy. "The Katayama administration is highly focused on fiscal sustainability and wishes to maintain it," she said.