As the yen approached around ¥160 to the dollar, Vice Minister of Finance for International Affairs Mimura (三村) of the Ministry of Finance made comments cautioning the market and was reported to have indicated that the moves were too fast.
As the yen weakened and the ¥160-to-the-dollar level came into focus, Vice Minister of Finance for International Affairs Mimura (三村) of the Ministry of Finance publicly made comments cautioning the market. The comments are said to have been intended to curb excessive rapid gains in the currency market.
Mimura said, “As usual, recent currency movements are fast,” referring to the speed of fluctuations in the foreign exchange market. He was subsequently reported to have suggested that the authorities would take appropriate action if necessary.
Market participants increasingly interpreted the comments as signaling the authorities' intention to curb excessive market moves through verbal intervention. Others, however, pointed out that references to specific policy measures and timing were limited.