Overview
- Japanese authorities intervened Thursday for the first time in nearly two years, knocking dollar/yen down to about 155.5 from above 160 before the pair rebounded toward 157.
- Top currency diplomat Atsushi Mimura declined to confirm the operation and warned speculators that authorities may step back in during Golden Week’s thin trading.
- Officials say Tokyo is in close contact with U.S. counterparts on currency markets, a signal that coordination is possible if volatility worsens.
- Analysts say a cautious Bank of Japan, a wide U.S.–Japan interest-rate gap, and high oil prices keep downward pressure on the yen and raise import costs for Japanese households and firms.
- Mimura has also left open action in crude oil futures if energy-market swings feed into currency moves, broadening the tools Tokyo could use to defend the yen.