In his sharpest warning to date, Japan’s top currency official warned speculators that if current conditions continue, authorities could need to take drastic measures in the foreign exchange market.Just before the weekend, the yen dropped below 160 per dollar, the level at which Japan intervened in 2024, prompting Mimura to speak.
According to a Bloomberg report, Mimura said, “We’re hearing increasing concern that speculative activity is picking up not just in the crude oil futures market but also in the foreign exchange market,” Atsushi Mimura, vice finance minister for international affairs, told reporters Monday. “If this situation continues, we believe decisive action may soon be necessary,” he said.
Also Read: Aluminium prices surge 6% after Iran attacks plants in Bahrain, UAEMimura spoke after the yen weakened past the 160 per dollar level just before the weekend, a level where Japan intervened in 2024.“We are prepared to respond on all fronts, and our focus is broad and comprehensive,” he said, suggesting the government is monitoring not only currency markets but also crude oil futures.Mimura has not used the term since entering office in July 2024, but Finance Minister Satsuki Katayama has mentioned potential “bold action” on multiple occasions since late last year. This phrase is commonly interpreted as signalling intervention. The statement made by Japan’s FX chief is usually interpreted as a last caution before any real yen-supporting action is taken.(Edited by : Juviraj Anchil)
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