Japan's Top Currency Diplomat Issues Strong Warning; Yen Surges Past 157 Level

English summary

Atsushi Mimura, Japan's top currency diplomat, warned markets to heed clear US-Japan signals on yen weakness and denied funding constraints for intervention. USD/JPY fell sharply to around 156.75. Despite the BOJ raising rates to 1.25%, the US-Japan rate gap persists, with authorities retaining the option to intervene jointly or unilaterally against excessive depreciation.