Japan’s vice finance minister for international affairs, Atsushi Mimura, sees the yen’s recent rise as aligned with economic fundamentals, dismissing any disparity. He highlighted strong GDP growth and 4% inflation in January, reinforcing expectations of further interest rate hikes.

The background to this is:

• JPY has strengthened to 149 per dollar, rebounding from last year’s low of nearly 162
• Markets anticipate continued BOJ tightening while the U.S. Federal Reserve considers rate cuts.
• The BOJ raised rates to 0.5% in January
• Further hikes are dependent on sustained inflation and wage growth
• Economists expect another increase to 0.75% by Q3

Info comes via Reuters (gated).

Atsushi Mimura is Japan’s vice finance minister for international affairs, AKA ‘top currency diplomat’.

Japan’s finance ministry is the relevant authority in Japan for ordering intervention in the JPY. Mimura would be directing Bank of Japan intervention, should it come to that.