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Japan signals it will not steer Bank of Japan monetary policy

USD/JPY was last near 161.70, down 0.43%, after Japan’s Chief Cabinet Secretary said policy specifics would be left to the BoJ.

Reported · Written up by our desk · Central Banks

Japan’s Chief Cabinet Secretary Minoru Kihara said during the European trading session that the specifics of monetary policy would be left to the Bank of Japan, a message signaling the administration would not interfere with central bank operations, FXStreet reported.

FXStreet said there was no immediate reaction seen in the Japanese yen after the comments. At the time of writing, USD/JPY was trading 0.43% lower near 161.70, with the yen described as having outperformed.

The outlet noted that yen moves are shaped by factors including Japan’s economic performance, BoJ policy, the interest-rate differential between Japan and the United States, and overall risk sentiment.

FXStreet also pointed to the BoJ’s policy history, saying ultra-loose policy from 2013 to 2024 contributed to yen depreciation and that the gradual unwinding has offered some support more recently, while the shrinking gap versus US rates has also affected the USD/JPY backdrop.

Latest closeUSD/JPY 162.35 ▼0.0%

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