Japan's Top Currency Diplomat Stays on High Alert Over Yen Volatility

Japan's top currency diplomat, Atsushi Mimura, said on Thursday that he remains on a state of heightened alert regarding currency market developments, expressing dissatisfaction with recent yen movements.

Speaking to reporters after returning from the G20 finance leaders' meeting in Asheville, North Carolina, Mimura, who serves as vice finance minister for international affairs, said he was "neither satisfied nor reassured" by the current situation. He declined to comment on specific currency levels or whether authorities had conducted a rate check.

The yen extended its gains on Thursday following a sharp move higher the previous day. Market participants attributed the rally to growing expectations of further interest rate hikes by the Bank of Japan, rather than direct intervention by Japanese authorities.

Mimura also addressed discussions held on the sidelines of the G20 summit, noting that talks between Japan's Finance Minister and U.S. Treasury Secretary Scott Bessent were "very productive," covering both market developments and cooperation within the G20 framework. His remarks came in response to questions about Bessent's recent comments on Japan's monetary policy.