Japan's Top FX Diplomat Mimura does not comment on FX intervention but says FX is being closely watched and are in daily contact with US authorities

Japan's top FX diplomat, Mimura, has noted that FX markets are being monitored closely, indicating heightened sensitivity to currency fluctuations, although he refrained from commenting on intervention specifics.

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Japan's Top FX Diplomat Mimura does not comment on FX intervention but says FX is being closely watched and are in daily contact with US authorities

[MARKET UPDATE] Asia-Pac bourses open higher (ASX 200 +1.0%, Nikkei +1.2%, KOSPI +1.6%); US equity futures hold onto its mild losses; FX, WTI and Fixed Income trades in tight ranges

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  • IMF's classification of free floating regime does not restrict frequency of intervention.
  • Will not comment on FX levels.
  • Too early to comment on US Treasury Secretary Bessent's upcoming visit. 
Context

His daily communication with US authorities suggests potential alignment or coordination on currency policies, which could have implications for the yen's stability and overall market sentiment. This cautious stance may signal to traders the government's readiness to act if needed but without committing to specific measures at this time.

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