Japan Repeats Warning: Markets Should Take Yen Weakness Signals at Face Value

Japan's top currency official has repeated his warning about the yen's weakness against the dollar. Atsushi Mimura, Japan's Vice Finance Minister for International Affairs, said in an interview that the signals sent by Japan's prime minister, finance minister, and the U.S. side are 'very clear,' and markets should take them at face value.

The remarks came after a joint intervention between the United States and Japan on July 31 to defend the yen, which had fallen to its lowest level in roughly 40 years. Approximately ¥27.13 trillion (approximately $172.3 billion) has been deployed across two rounds of currency intervention this year.

Mimura emphasized that markets should take the joint intervention message 'at face value' and expressed his concern about the yen's weakness, which is adding to the burden on Japanese policymakers by further pushing up import prices amid surging fuel costs from the Middle East conflict.