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Japan finance official says BoJ policy will follow the domestic economy
The Ministry of Finance official also said Japan expects the BoJ to set policy without being influenced by the United States, amid discussion of conditions for U.S.-Japan FX intervention.
A senior official at Japan’s Ministry of Finance declined to comment on recent foreign exchange moves, while saying Japan expects the Bank of Japan to steer monetary policy in line with the domestic economy rather than being influenced by the United States, according to FXStreet.
The official, identified in the report as Katayama, discussed FX-related topics in a bilateral meeting that also covered Japan’s fiscal policy and the conditions for U.S.-Japan joint currency intervention with G7 counterparts, the outlet reported.
FXStreet noted the yen’s value is typically shaped by factors including Japanese economic performance, BoJ policy, the gap between Japanese and U.S. bond yields, and global risk sentiment. The BoJ’s mandate includes currency control, and it has intervened directly at times, generally aimed at lowering the yen, though it refrains often due to political concerns from major trading partners.
The outlet added that Japan’s ultra-loose monetary policy from 2013 through 2024 contributed to yen depreciation versus major peers as policy divergence with other central banks widened, while the gradual unwinding of that stance has supported the yen more recently as the yield differential narrows.