Japan’s Top FX Diplomat Kanda: Will closely monitor Forex with high sense of urgency

Having witnessed the biggest daily jump in five weeks, as well as the fresh high of 2023, Japan's top currency diplomat Masato Kanda crossed wires, via Reuters, early Wednesday.

The government official initially cited readiness to closely monitor the Foreign Exchange (Forex or FX) moves with a high sense of urgency before suggesting that all options for the FX moves are on the table.

Japan’s Kanda also showed the desirability for the currency to reflect fundamentals while criticizing rapid moves as bringing uncertainty to firms and households.

It’s worth observing that Japan’s Top FX Diplomat also cited speculation as the catalyst behind recent moves of the Yen.

USD/JPY retreats

Given the escalating fears of Japan meddling at higher levels of the USD/JPY, such comments from the key Japan FX Diplomat triggered a pullback in the Yen pair towards 147.50 after it rose to the yearly high of 147.80 the previous day.

Also read: USD/JPY renews yearly high to 147.80 but lacks follow-through amid Japan meddling fears, US data eyed