Japan’s Mimura keeps threat of FX intervention alive

Japan's top currency official, Atsushi Mimura, has reaffirmed on Thursday that the government remains prepared to intervene in the foreign exchange market as authorities keep a close watch on currency movements. Mimura stated, "We continue to stand ready on forex," when asked about the possibility of such action. However, he did not confirm whether authorities had engaged in rate checks with market participants, a practice often preceding intervention.

Mimura expressed a cautious sentiment regarding the current market conditions, stating he is neither "at ease nor satisfied" with the situation. These remarks keep the door open for potential Japanese intervention in foreign exchange markets, without explicitly confirming any prior steps. The Japanese Yen (JPY) experienced minimal initial reaction to these comments. As of the time of writing, USD/JPY was trading at 156.55, marking a 1.36% decline for the day.