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Japan’s FX chief says authorities are ready to act if needed

Atsushi Mimura said he is in close contact on foreign exchange after recent yen weakness, while declining to comment on whether Japan will intervene.

Reported · Written up by our desk · Central Banks

Atsushi Mimura, Japan’s Vice Finance Minister for International Affairs and its top foreign exchange official, said he is in close contact with relevant authorities on foreign exchange and that they are always prepared to take suitable measures, according to FXStreet.

Mimura declined to comment on currency intervention and did not provide details on any future plans, even as he noted that discussions include concerns around recent yen weakness.

FXStreet also noted that the yen is strongly influenced by Bank of Japan policy, the gap between Japanese and U.S. bond yields, and risk sentiment, and that Japan’s approach can affect USD/JPY moves. At the time of writing, USD/JPY was trading around 160.35, up 0.51% on the day.

The outlet further described how the Bank of Japan’s prior ultra-loose policy contributed to yen depreciation versus major peers, and how the subsequent unwinding and policy divergence with the U.S. Federal Reserve have shaped the currency’s direction.

Latest closeUSD/JPY 159.74 ▼2.5%

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