Japan's verbal intervention escalates, yen strengthens to two-week high
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Japan's top currency diplomat, Atsushi Mimura, issued another warning against the yen's weakness, causing the yen to strengthen 0.4% against the US dollar to 156.51, its strongest level since September 18. Mimura stated that Prime Minister Shigeru Ishiba, Finance Minister Katsunobu Kato, and the United States have all sent 'very clear' signals regarding the yen's depreciation. Prime Minister Ishiba noted that former US President Donald Trump expressed concern about the weak yen during their meeting last week. Finance Minister Kato spoke with US Treasury Secretary Scott Bessent on Friday evening, and both reaffirmed their view that the yen is undervalued, agreeing to strengthen bilateral cooperation. Nomura FX strategist Yusuke Miyairi commented that this should create sufficient market tension regarding potential actual intervention by Japan's Ministry of Finance, noting that Mimura had previously signaled a silent approach but has now joined the verbal intervention campaign.
Source report
September 28 — Japan's top currency diplomat, Atsushi Mimura, issued a renewed warning against the yen's weakness, prompting the currency to strengthen by as much as 0.4% against the U.S. dollar, reaching 156.51 — its strongest level since September 18.
Mimura stated that both Japan's Prime Minister and Finance Minister, as well as the United States, have recently sent "very clear" signals regarding the yen's depreciation.
The warning follows remarks from Japanese Prime Minister Sanae Takaichi, who noted that during a meeting with U.S. President Donald Trump last week, Trump also expressed concern over the yen's weakness.
On Friday evening, Japan's Finance Minister Katsutoshi Katayama held a phone call with U.S. Treasury Secretary Scott Bessent. During the conversation, both sides reaffirmed their view that the yen is undervalued and agreed to further strengthen bilateral cooperation.
"This should keep the market sufficiently on edge about the possibility of actual intervention by Japan's Ministry of Finance in the near term," said Yusuke Miyairi, a foreign exchange strategist at Nomura. "Previously, Mimura had signaled he would remain silent to maintain market anxiety over intervention risks, but starting last Friday, he has joined the chorus of verbal intervention."
Source
金十数据Neutral / independent
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