Japan’s Top FX Diplomat Warns Against Speculative Moves as Yen Declines

By Makiko Yamazaki

TOKYO – Japan’s top currency diplomat, Atsushi Mimura, issued a warning on Monday regarding speculative activities in the foreign exchange market, as the yen dropped below 149 per dollar.

Mimura informed reporters, "We will monitor currency market movements, including speculative trading, with a sense of urgency," echoing the verbal warning strategy previously employed by his predecessor, Masato Kanda.

While he acknowledged the situation, Mimura did not provide specifics about the current market dynamics.

The yen weakened to 149.10 against the dollar during early trading on Monday, marking its lowest point since August 16. This decline followed a surprisingly strong U.S. jobs report for September, prompting traders to reduce their expectations for further significant interest rate cuts by the Federal Reserve.

Additionally, the yen has faced increased pressure since Japan’s new Prime Minister, Shigeru Ishiba, surprised the markets by stating that the economy was not prepared for additional rate hikes. This statement marked a significant shift from his earlier support of the Bank of Japan’s gradual exit from its long-standing loose monetary policy.