Japan's Finance Minister Says Currency Intervention Not Limited, US Treasury Secretary Plans to Visit Japan Next Week

The Japanese top foreign exchange official, Jun Mimura, stated on Thursday that the International Monetary Fund's characterization of Japan's floating exchange rate system does not limit the frequency of the Japanese government's intervention in the currency market. In an interview, Mimura directly stated that the so-called restrictions on intervention frequencies within six months do not constrain Japan's actions.

This statement directly responded to market concerns over the rules of the International Monetary Fund. Generally, if an economy intervenes in the currency market more than three times within six months, its floating status might be questioned, but Japan clearly does not intend to be bound by this.

Currently, the Japanese Ministry of Finance is facing the challenge of significant yen fluctuations. Although Mimura refused to comment on specific exchange rates, he emphasized that the government is closely monitoring the trends in the foreign exchange market from all aspects, indicating that their focus is always comprehensive and will not change.

Market data shows that Japan's intervention is significantly increasing. According to Reuters, citing sources and foreign exchange market data, the Japanese authorities might have sold about 35 billion USD to support yen last Thursday, an extremely large scale.

The yen's fluctuations did not subside due to a single intervention. From last Thursday to this Wednesday, the market observed several instances of sudden, sharp increases in yen exchange rates, which investors widely see as a clear signal of continued behind-the-scenes actions by the regulatory authorities.

On the diplomatic front, Japan is trying to gain the understanding of its main allies. Mimura stated that he maintains daily communication with US financial officials. He believes that American counterparts fully understand Japan's policy considerations and the actual actions taken recently.

The upcoming high-level meeting between Japan and the US will become the new focus of market attention. According to the "Nihon Keizai Shimbun," citing diplomatic sources, US Treasury Secretary Bessente plans to meet with Japanese Prime Minister Takashi Sanae next week.

The two sides are expected to engage in in-depth discussions on curbing speculative sales of yen, among other issues. The meeting is seen as a key signal of Japan and the US strengthening their coordination on exchange rate policies, which could further narrow the profit space for speculative capital in the currency market.