JAKARTA - The Japanese government has pledged to keep debt issuance and sales conducted appropriately as market concerns about the country's fiscal health increase amid the continued weakening of the yen.
Japanese Finance Minister Satsuki Katayama on Friday, July 3, reaffirmed his commitment to taking the necessary measures to address the weakening of the yen exchange rate against the US dollar.
The yen exchange rate had dropped below the 162 level and approached 163 per US dollar earlier this week. This position is the lowest in the last 39.5 years.
The Japanese currency then strengthened to the range of 161 yen after the US employment data report released last night showed results below expectations.
In morning trade in Tokyo, the yen was flat at 161 per dollar.
Japan and the United States have a bilateral agreement on currency market intervention to address volatility and excessive depreciation or appreciation of each country's currency.
"We always maintain close communication with the United States at all times," Katayama told reporters, referring to the agreement as reported by ANTARA from Kyodo.
Meanwhile, in the debt market, the yield (yield) of Japanese government bonds with a 10-year tenor touched 2.81 percent on Friday.
The figure is the highest in about 29 years. The spike was partly triggered by prolonged market concerns over Japan's deteriorating fiscal health, which is currently the worst among developed countries.
Katayama stated that the government would strive to manage the balance between "the amount of government bond issuance and the total budget" in order to maintain market confidence and the sustainability of public finances, and continue to implement "responsible and proactive" fiscal policies.
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