Japan’s top currency diplomat warns against speculative moves as yen falls By Reuters

By Makiko Yamazaki

TOKYO (Reuters) – Japan’s top currency diplomat Atsushi Mimura issued a warning against speculative moves in the currency market on Monday as the yen fell below 149 to the dollar.

“We will monitor the movements of the foreign exchange market, including speculative transactions, with a sense of urgency,” Mimura told reporters, reviving a verbal warning tactic that his predecessor, Masato Kanda, frequently used.

Mimura declined to comment on the specifics of the current market situation.

The yen weakened to 149.10 against the dollar in early trading on Monday, its weakest since Aug. 16, after a surprisingly strong US jobs report for September prompted traders to cut bets that the Federal Reserve will further large interest rate cuts.

The yen has also been under pressure since Japan’s new prime minister, Shigeru Ishiba, stunned markets when he said the economy was not ready for further interest rate hikes, an apparent shift from his previous support for decades of stimulus by the Bank Japan’s loose monetary policy.