Aug 7 2024: Japan’s top currency diplomat, Atsushi Mimura, stated on Wednesday that the government is closely monitoring both stock and currency markets and is actively collaborating with the Bank of Japan and other international entities.
At an event hosted by Nikkei Business magazine, Mimura highlighted the government’s coordinated efforts with other countries and the central bank. He assured that Japan’s economic fundamentals remain stable and expressed optimism about a modest economic recovery.
Regarding current foreign exchange rates, Mimura noted that there are no specific target levels. “Our focus is on managing volatility, as excessive fluctuations create uncertainties for businesses,” he explained.
Mimura emphasized the importance of stable currency movements that reflect economic fundamentals. Recent volatility has affected the yen, which dropped on Wednesday following comments from a key BOJ official who downplayed the likelihood of imminent rate hikes. Despite this drop, the yen remains significantly above its 38-year low of 161.96 per dollar, reached in early July.