Japan’s Mimura keeps threat of FX intervention alive

Japan’s top currency diplomat Atsushi Mimura reiterates on Thursday that authorities remain ready to act in the foreign exchange market, as Tokyo continues to closely monitor currency moves.

“We continue to stand ready on forex,” Mimura says, according to Reuters. Asked whether authorities had conducted rate checks with market participants, a practice that can precede an intervention, he declines to comment.

Mimura also strikes a cautious tone on current market conditions, saying he is “neither at ease nor satisfied” with the situation.

The comments therefore keep the possibility of intervention by Japanese authorities on the table, without providing confirmation that any concrete steps have already been taken.

Market reaction

The Japanese Yen (JPY) shows little immediate reaction to these comments. USD/JPY trades around 156.55 at the time of writing, down 1.36% on the day.