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USD/JPY climbs as Japan officials reiterate BOJ control of monetary policy

Forexlive reports the yen faces additional pressure as the BOJ weighs cost-push inflation amid the US-Iran conflict.

Reported · Written up by our desk · Major Pairs

Japan finance minister Katayama reaffirmed that setting monetary policy remains the responsibility of the Bank of Japan, according to Forexlive. The government also said it will work to avoid misunderstandings in markets about the fiscal and monetary policy stance.

Forexlive said scrutiny has increased as rates rise and fiscal concerns grow under Japan Prime Minister Takaichi, with the Japanese yen emerging as one of the main victims. The outlet attributed further USD/JPY strength to a combination of higher rates and an inflation backdrop that includes cost-push pressures.

The report added that the US-Iran conflict has made conditions tougher for the BOJ, contributing to continued upside pressure for USD/JPY. It noted that potential intervention by Japan's Ministry of Finance is the main factor that could prevent a more severe yen selloff.

Latest closeUSD/JPY 162.33 ▲0.2%

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