Japan warns against weak yen, stands ready to intervene

Tokyo's top currency official, Atsushi Mimura, remains vigilant about exchange rates, warning of Tokyo's potential market intervention to curb excessive yen depreciation. This stance persists despite the yen's 2% increase against the dollar on Thursday, as investors factor in the possibility of Bank of Japan rate hikes. Mimura affirmed ongoing communication with U.S. authorities following the G20 finance leaders meeting in Asheville, North Carolina, which concluded on Tuesday.

The dollar traded at 155.305 yen following Mimura's remarks, reflecting market anticipation of another yen-buying intervention. However, the yen soon retraced its gains to 156.43 per dollar in Asia, highlighting its ongoing decline, partly due to significant U.S.-Japan interest rate differentials. Finance Minister Satsuki Katayama dismissed any demands from U.S. Treasury Secretary Scott Bessent regarding Japan's monetary policy, emphasizing that there was no discussion about her country's economic policy.