As the yen appreciates in foreign exchange markets, Mimura (三村), Vice Minister of Finance for International Affairs, indicated that he would continue responding while remaining on full alert. Developments in Japan and the United States, along with expectations of BOJ rate hikes, are drawing market attention.
In foreign exchange markets, the yen appreciated further. The dollar had been trading in the low ¥159s on the 2nd, but on the 3rd the yen appreciated to a level where the dollar temporarily fell into the ¥155 range. Market participants say the pace of BOJ rate hikes could accelerate against the backdrop of the BOJ’s policy response and rising expectations of US rate hikes.
At a press conference, Mimura (三村), Vice Minister of Finance for International Affairs, said he would not comment on the current situation, then added that he was neither at all reassured nor satisfied and intended to continue working while remaining on full alert. After returning to Japan following the G20 Finance Ministers and Central Bank Governors Meeting, he indicated that he would continue closely monitoring exchange-rate movements.
According to market analysis, views are emerging that the pace of rate hikes will accelerate in response to the BOJ’s rate-hike policy and rising expectations of rate hikes in the United States. This is expected to keep attention focused on developments in foreign exchange markets.