Just before the weekend, the yen fell below 160 per dollar, the threshold at which Japan intervened in 2024, prompting Mimura to address the matter.
According to a Bloomberg report, Mimura stated, “We’re noticing growing concern that speculative activity is increasing not only in the crude oil futures market but also in the foreign exchange market,” Atsushi Mimura, vice finance minister for international affairs, informed reporters on Monday. “If this trend continues, we believe that decisive measures may soon be required,” he added.
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Mimura’s remarks followed the yen’s decline past the 160 per dollar mark just before the weekend, a level where Japan had intervened in 2024.
“We stand ready to act on all fronts, with a broad and comprehensive focus,” he mentioned, indicating that the government is keeping an eye on not only currency markets but also crude oil futures.
Though Mimura has not used this terminology since taking office in July 2024, Finance Minister Satsuki Katayama has referenced potential “bold action” several times since late last year, which is often interpreted as a signal for intervention. The comments made by Japan’s FX chief are typically seen as a final warning before any substantial actions to support the yen are undertaken.
(Edited by : Juviraj Anchil)
