Japan remains on high alert over forex moves: top currency diplomat

Japan continues to maintain a high alert status regarding foreign exchange movements, according to the country's top currency diplomat Atsushi Mimura. This was stated on Thursday following the yen's significant increase against the U.S. dollar during that day's trading session. Mimura, who serves as the vice finance minister for international affairs, expressed dissatisfaction with the yen's present levels in the currency market, stating that he believes they remain too high.

He emphasized the need to continue maintaining a heightened state of vigilance. The value of the dollar dropped to the lower 156 yen range in Tokyo, slipping below the 160 yen mark that had been breached in recent trading, as market participants anticipate the Bank of Japan to raise its key interest rate during the policy meeting scheduled for September 17-18.

Mimura made these remarks after attending a meeting of Group of 20 finance and central bank chiefs earlier in the week in North Carolina, United States. Financial markets are still cautious about the possibility of government or Bank of Japan intervention in the currency market. In late July, authorities intervened in the market to support the yen when the dollar remained above the 160 yen level.

On Wednesday, Hajime Takata, a member of the Bank of Japan's hawkish Policy Board, suggested that the central bank might expedite interest rate hikes or augment the magnitude of rate increases.