Japan warns against weak yen, stands ready to intervene

Atsushi Mimura, Japan's top currency diplomat, stated Friday that officials remain on alert for exchange-rate moves. He confirmed Tokyo is prepared to intervene if yen declines become excessive. The dollar fell to 155.305 yen immediately following these comments before recovering slightly later in Asia as the rate dropped to 156.43 per dollar. This trend occurs despite a recent 2 percent jump against the dollar on Thursday, when investors were pricing in interest rate hikes by the Bank of Japan. Mimura noted that authorities maintain constant contact with U.S. officials following the G20 finance leaders gathering. Finance Minister Satsuki Katayama reiterated similar warnings during his news conference later. Scott Bessent, U.S. Treasury Secretary, previously supported decisive monetary steps to address what he described as yen undervaluation.