Japan finance minister says ready to act 'on all fronts' after report on oil futures intervention - Reuters

Japan signals readiness to respond after oil futures intervention report

Japanese Finance Minister Satsuki Katayama said the government is prepared to take necessary measures "on all fronts" but did not directly comment on whether Japan could intervene in the crude oil futures market.

Her remarks came after a report that Japan's government is considering intervention in crude oil futures as the Middle East crisis drives energy prices sharply higher.

Speaking in Tokyo, Katayama said it is widely believed that speculative moves in crude oil futures markets are also affecting foreign exchange markets. She said the government is determined to respond thoroughly at all times and on all fronts, taking into account the impact currency movements have on people's lives and the economy.

Market concerns

Katayama's comments linked rising energy market volatility with broader economic risks, particularly through its effect on exchange rates.

While she stopped short of confirming possible action in oil futures, her statement underscored the government's concern about the way sharp market moves can feed through to households and the wider economy.

The report of possible intervention came as higher crude prices, driven by the Middle East crisis, added to pressure on markets and policymakers in Japan.