Tokyo: Japan and the United States are working closely together on foreign exchange policy as sharp movements in the yen raise concerns in financial markets.
Japan’s top currency diplomat Atsushi Mimura said the two countries will act in close coordination and respond properly to market conditions when needed. He referred to an earlier joint understanding between Tokyo and Washington that supports market based exchange rates but allows action when currency moves become excessive or disorderly.
The yen has strengthened sharply in recent days, reaching its highest level in more than two months against the U.S. dollar. This has increased speculation that authorities could step in to calm the market. Traders have also pointed to recent rate checks by the New York Federal Reserve as a possible signal that intervention is being considered.
Japanese officials have avoided confirming any direct action but said they are watching currency movements with a strong sense of urgency. Finance Ministry sources said they remain focused on preventing sudden swings that could hurt businesses and the wider economy.
Market reactions have been swift. A stronger yen has weighed on Japanese stocks, especially exporters, while other Asian currencies have also firmed. Investors have moved cautiously, with some turning to safer assets such as gold due to uncertainty in foreign exchange markets.
Analysts say a coordinated move by Japan and the United States would be rare and would send a strong signal to traders. It would be the first such joint action in more than ten years and could influence currency markets across Asia and beyond.
For now, officials on both sides continue to stress the need for stability and orderly trading, while keeping all options open if volatility increases further.