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Japan signals urgency as markets shape long term rates

Chief Cabinet Secretary Takaichi said the government is focused on stabilizing markets while aiming for a lower debt to GDP path.

Reported · Written up by our desk · Central Banks

Japan's government said it is watching markets with a very high sense of urgency, framing market moves as a key driver of long term interest rates, according to Forexlive. While the remarks were not described as direct verbal intervention aimed at the Japanese yen, Forexlive said the comments were indirectly tied to the currency situation and the need to secure market trust. Forexlive added that the government wants to keep confidence steady while working toward stably lowering Japan's debt to GDP ratio. The outlet also noted that the BOJ has been raising interest rates amid mounting fiscal and debt risks. In currency trading, Forexlive reported USD/JPY was down 0.1% to 162.35 on the day, though it remained higher on the week after a sharp drop last Thursday. It added that intervention fears remain a key risk, with Japan's ministry of finance watching closely as USD/JPY trades near levels described as the highest in 40 years.

Latest closeUSD/JPY 162.49 ▲0.2%

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