Japan's senior currency official emphasized on Thursday that authorities have not lowered their guard against volatile movements in the foreign exchange market, issuing a clear warning even after the yen strengthened against the dollar.
Speaking to reporters, Atsushi Mimura - vice finance minister for currency affairs - said Tokyo's stance remains steady. "Our policy remains unchanged. We will continue to closely monitor markets with a high sense of urgency and maintain close communication with markets," he said. Mimura added explicitly: "We have not lowered our guard at all."
The remarks came amid a recent rally in the yen on Wednesday, a move market participants linked to investor expectations that Prime Minister Sanae Takaichi's landslide election victory would leave her well positioned to exert control over fiscal policy in the period ahead. That political outcome was cited by investors as a factor supporting the yen's advance.
Market turbulence briefly reappeared when robust U.S. January nonfarm payrolls data prompted sharp swings in currency trading. Despite those disruptions, the dollar traded in a relatively stable range on Thursday, hovering around 153 yen.
Mimura also confirmed that Japanese authorities have been staying in close contact with U.S. officials. He framed that ongoing communication as part of Tokyo's approach to managing potential cross-border currency volatility, reiterating the government's intent to watch market developments closely and act as needed within its established policy framework.
Context and implications
- The official language underscores a sustained posture of vigilance by Japanese authorities toward FX market moves.
- Political developments at home and macroeconomic data abroad have both contributed to recent swings in the yen-dollar rate.
- Tokyo's continued dialogue with U.S. counterparts is presented as part of its monitoring and response strategy.
Summary of official statements
- Policy unchanged: Tokyo will keep monitoring markets closely with a high sense of urgency.
- No relaxation of vigilance: Authorities assert they have "not lowered our guard at all."
- International coordination: Japanese officials have been in close contact with U.S. authorities.