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Japan PM Takaichi says policy will weigh fiscal sustainability

USD/JPY was trading flat around 162.5 after the comments, with the yen’s moves seen as tied to Bank of Japan policy and the US-Japan bond yield differential.

Reported · Written up by our desk · Major Pairs

Japan Prime Minister Sanae Takaichi said the government will guide economic and fiscal policy while focusing closely on fiscal sustainability and maintaining market trust, speaking during the Asian trading session on Tuesday, according to FXStreet.

Takaichi also outlined targets for growth, aiming for real growth exceeding 1% and nominal growth of 3%, with an expectation of higher growth later, and said the policy approach would be shaped with due heed to fiscal sustainability.

FXStreet noted the comments had no immediate impact on the Japanese yen, with USD/JPY trading flat around 162.5 at the time of writing.

The outlet said the yen’s value is influenced by Japanese economic performance, Bank of Japan policy, the differential between Japanese and US bond yields, and broader risk sentiment, and it added that changes to the Bank of Japan’s stance and its impact on the US-Japan yield spread are key drivers for the currency.

Latest closeUSD/JPY 162.33 ▲0.2%

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