Japan chief cabinet secretary says government is watching markets with high sense of urgency

Japan’s chief cabinet secretary said the government is watching markets with very high urgency, underscoring the priority placed on financial stability. The remarks were framed as part of efforts to secure market trust by steadily lowering the government debt-to-GDP ratio, rather than as direct verbal intervention in the yen. The statement comes as Japan reiterates that the fiscal approach associated with Sanae Takaichi remains the right direction, though market confidence has not fully improved since last year. The context also includes rising long-term interest rate dynamics tied to market forces and the Bank of Japan raising rates amid mounting Japan debt risks. The USD/JPY was down 0.1% to 162.35 on the day, but remained higher on the week after a sharp drop last Thursday. The Japanese Ministry of Finance is also cited as monitoring closely as the currency pair trades near its highest level in 40 years.