Japan new to FX diplomat: Only natural solution to yen weakness is to improve economy

Atsushi Mimura takes over at the end of the month and the market is unsure of what changes are coming. His hints in today’s comments don’t suggest a big splash.

• Will act under internationally agreed commitments on foreign exchange
• It has been internationally agreed that measures including intervention are allowed when necessary
• A change in Vice Finance Minister for international affairs doesn’t mean a change in basic policy
• Only and natural solution to yen’s weakness is to improve economic competitiveness and boost growth potential

USD/JPY is trading up 46 pips to 154.48 but is bouncing around as we go through the month-end fix.

This article was written by Adam Button at www.forexlive.com.