Japan Warns Ready to Intervene as Yen Continues Downtrend

Japan's top currency diplomat Atsushi Mimura warned on September 4 that he remained alert to exchange rate moves, maintaining a warning of Tokyo's readiness to intervene in the market to combat excessive yen declines.

The remark came despite the yen's 2% jump against the US dollar on September 3, as investors continued to price in the chance of interest rate hikes by the Bank of Japan (BOJ).

Mimura stated that there was no change to their stance of being on alert to currency moves and that they remained in constant contact with US authorities after the G-20 finance leaders' gathering.

Markets have nearly fully priced in the chance of a BOJ rate hike in September, driven by hawkish BOJ communications and comments from US Treasury Secretary Scott Bessent urging the Japanese central bank to raise rates.