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Japan warns of action to prevent excessive yen falls

Japan’s currency diplomat said Tokyo and Washington delivered a “very clear” message last week, with USD/JPY around 156.90 after the remarks.

Reported · Written up by our desk · Central Banks

Japan’s top currency diplomat Atsushi Mimura reiterated worries about excessive yen weakness and said markets should take Tokyo and Washington’s “very clear” message on the yen at face value, according to Reuters via FXStreet.

Mimura signaled he is prepared to act to counter sharp yen declines, and FXStreet noted there was no major immediate reaction in the Japanese yen after the comments.

During the day, the yen held steady to slightly stronger, with USD/JPY trading about 0.18% lower near 156.90.

FXStreet also linked the yen’s moves to Bank of Japan policy and factors such as the bond yield gap versus the United States, alongside trader risk sentiment.

Latest closeUSD/JPY 157.19 ▼0.7%

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