Japan to closely coordinate with US on foreign exchange, top currency diplomat says

TOKYO, Jan 26 (Reuters) – Japan’s top currency diplomat Atsushi Mimura said on Monday the government will maintain close coordination with the United States on foreign exchange and act appropriately, while declining to confirm news reports of rate checks.

The yen spiked on Friday as the New York Federal Reserve conducted rate checks, heightening the chance of joint U.S.-Japan intervention to halt the currency’s slide.

“We will continue to closely coordinate with the U.S. authorities as needed, based on a joint Japan-U.S. statement issued in September last year, and will respond appropriately,” Mimura told reporters.

The September statement reaffirmed both countries’ commitment to market-determined exchange rates while agreeing that foreign-exchange intervention should be reserved for combating excessive volatility.

Japanese officials have said it marked the first written U.S. confirmation of the right to intervene in the event of excessive volatility.

Mimura did not comment on the possibility of a coordinated market intervention by the two governments.

Japan’s Finance Minister Satsuki Katayama also declined to comment on Fridays’ reported rate checks that led to the yen suddenly jumping against the U.S. dollar.

“There is nothing I can talk about,” Katayama said.