The Bank of Japan's “cautious interest rate hike” caused the yen to fall, and Japan's top foreign exchange official issued an “intervention warning”

The Zhitong Finance App learned that after the Bank of Japan's interest rate decision on Friday caused the yen to weaken against the US dollar, Japan's chief currency official issued a warning about recent fluctuations in the foreign exchange market. Atsushi Mimura (Atsushi Mimura), Japan's top foreign exchange diplomat, said, “Especially after the monetary policy meeting last week, we saw one-way, sudden fluctuations in the market. I am deeply concerned about this, and we hope to take appropriate measures to deal with such excessive fluctuations.”

Following the Bank of Japan's announcement of interest rate hikes on Friday, Bank of Japan Governor Kazuo Ueda chose to maintain policy options without sending an overly hawkish signal rather than boosting the yen. As a result, the exchange rate of the yen fell to 157.78 against the US dollar over the weekend, indicating that investors were disappointed that the Bank of Japan failed to release a stronger signal to raise interest rates.

On Monday, after Mimura Jun's speech, the yen strengthened to 157.51 against the US dollar for a while. Since analysts generally expect the Bank of Japan to keep interest rates unchanged for the next six months or so before the next rate hike, Japan's Ministry of Finance may have to intervene in the foreign exchange market if the exchange rate of the yen continues to weaken to the 160 mark against the US dollar.