Responding to a question from an opposition lawmaker about how the government would respond to excessive declines in the yen, the Japanese prime minister Fumio Kishida told parliament that they are closely watching the impact of currency movements on the economy.
Featured statements
The Yen weakening would help boost exports.
A weak yen would also increase corporate costs by increasing import prices.
We want to expand the current tax incentive plan aimed at encouraging companies to increase wages, as well as targeting larger firms.
We must deploy fiscal stimulus flexibly, but this does not mean that there is no problem with increasing the debt balance indefinitely.
We must earn the market’s confidence in Japan’s finances to avoid the risk of default.
Market reaction
The USD/JPY It has rebounded from a dip to 113.01, and is now trading around 113.30, as the US dollar receives a slight boost amid persistent flows of risk aversion. The pair is modestly flat on the day.
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