Japan's Mimura says markets shouldn't forget intervention risks as yen nears 160
EWJ•Japan's top currency diplomat Atsushi Mimura warned that it was “too early to forget” this summer's yen-buying interventions as the yen weakened to 159.94 per dollar. Japan's import price index rose 24.8% year over year in October.
1. Intervention warning
Mimura said recent currency moves had been excessively rapid and cautioned that it was “too early to forget” Japan's yen-buying interventions in late July through early August, including one conducted jointly with the United States.
2. Yen weakens
The dollar rose to 159.94 yen early Thursday, its strongest level in more than two months. The yen-based import price index jumped 24.8% in October from a year earlier.
3. Analysts see further pressure
Mizuho Securities analysts said the dollar was likely to continue rising against the yen, citing the resilience of the U.S. economy and persistently elevated inflation driven by robust AI investment. They said Tokyo could intervene unilaterally if the dollar breaks above 160 and yen weakness fuels inflation, increasing the risk of declining support for Prime Minister Sanae Takaichi's government.
