Japan’s top currency official, Atsushi Mimura, has stated that the government remains on high alert concerning foreign exchange movements, particularly following recent gains in the Japanese currency. Mimura, who serves as the vice finance minister for international affairs, addressed reporters in Tokyo on Thursday morning, emphasising that the government has “not lowered our guard at all.”
Mimura acknowledged the market activity spurred by recent US jobs data, which significantly exceeded expectations by showing 130,000 roles added in January. He declined to comment on speculation surrounding potential rate checks in response to these movements. The robust jobs data has led traders to adjust their expectations for the Federal Reserve’s next interest rate cut, now anticipated in July rather than June.
Mimura reiterated Japan’s commitment to closely monitoring market developments with a high sense of urgency and maintaining open lines of communication with market participants. He also highlighted the ongoing close collaboration between Japan and US authorities on currency matters. Speculation regarding rate checks in the prior month had contributed to the yen’s appreciation against the US dollar. Recent data indicated that Japan did not engage in direct intervention to support the yen in the four weeks leading up to January 28.
