Japan Appoints New Foreign Exchange Diplomat Amid Yen’s Decline

Summary:
Japan has appointed Atsushi Mimura as the new top foreign exchange diplomat amid a significant drop in the yen, which has hit a 38-year low against the dollar. Mimura replaces Masato Kanda, who was known for aggressive interventions to stabilize the yen. This personnel change, part of an annual reshuffle, occurs as the yen’s decline raises import costs, adding financial pressure on households and companies.
Finance Minister Shunichi Suzuki emphasized the need to address excessive currency volatility, while the yen’s depreciation continues due to interest rate disparities between Japan and the U.S. Market experts anticipate potential intervention if the yen approaches 164.50 per dollar. Mimura, set to assume his role on July 31, has extensive experience in financial regulation and international economic policy coordination, but his specific stance on currency policy remains unclear.