Latest news with #Bank of Japan
Bloomberg
32 minutes ago
- Business
- Bloomberg
Japan's Kato Voices Concern With Yen at Weakest Since March
Japan's Finance Minister said he's worried by movements in the yen, which weakened to levels last seen in March following dovish messaging on interest rates from the Bank of Japan. 'The government is deeply concerned about trends in the currency market, including speculative movements,' Finance Minister Katsunobu Kato told reporters on Friday. 'It's important for exchange rates to remain stable, reflecting economic fundamentals,' he added.
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
Bank of Japan Likely on Hold Though U.S. Trade Deal Cuts Uncertainty
TOKYO—Japan's central bank policymakers are expected to keep rates on hold this week, even though a trade deal with the U.S. relieves some uncertainty over tariffs and strengthens the case for tighter policy in coming months. The Bank of Japan has been caught this year between the desire to raise rates amid persistent inflation at home and the need to keep borrowing costs low because of economic uncertainty stemming from U.S. tariffs.
Bloomberg
3 days ago
- Business
- Bloomberg
Japan Two-Year Bond Sale Draws Strongest Demand Since October
Japan's two-year government bond auction Tuesday drew the strongest demand since October as investors were attracted to bond yields that have approached the highest since 2008. Demand has also been supported by continued demand for Bank of Japan-eligible collateral and surplus cash management.
Japan Times
3 days ago
- Business
- Japan Times
Japan should take all possible measures to raise wages, white paper says
In an annual white paper on Tuesday the government underlined the need to take all possible measures to realize wage increases that outpace inflation. Although mainly major companies have continued to raise wages, consumption recovery remains weak due to rising prices, said the Annual Report on the Japanese Economy and Public Finance for fiscal 2025, which was submitted to the day's Cabinet meeting by Economic and Fiscal Policy Minister Ryosei Akazawa. It stressed that, amid concerns over risks from the U.S. high-tariff policy, now is a turning point for whether Japan can transform its economy into a growth-oriented one based on wage hikes. Prolonged high prices for food and other goods have pushed down consumer sentiment and real wages, the white paper analyzed. Furthermore, it said that predictions for continued price climbs and low expectations for lasting wage hikes have curbed consumption. Price levels predicted by households have risen. According to a Bank of Japan survey conducted from January to March this year, the expected rate of inflation one year later was around 10%, and the expected average rate of inflation over the next five years stood at around 5%. As a result, consumer spending, which accounts for more than half of Japan's gross domestic product, has continued to lack strength compared with wage and income growth, the paper explained. To realize a powerful recovery of consumption, stable price climbs and sustained wage hikes that surpass them are essential, it added.
Free Malaysia Today
23-07-2025
- Business
- Free Malaysia Today
Yen wobbles as traders process trade deal and political uncertainty
The yen was last steady on the day at ¥146.83 to the US dollar. (AP pic) TOKYO : Market focus was on the yen today, which traded choppily as traders weighed speculation about the future of Japanese Prime Minister Shigeru Ishiba against US President Donald Trump's announcement of a trade deal with Japan. The yen initially hit its strongest level since July 11 at 146.20 per dollar on the trade news but flipped to losses after reports Ishiba intends to step down next month following a bruising upper house election defeat. Ishiba said the reports he had already decided to resign were 'completely unfounded', and the yen recovered somewhat and was last steady on the day at ¥146.83 to the dollar. The trade deal – which lowers tariffs on auto imports and spares Tokyo from punishing new levies – affects the yen both because of what it means for the economy and also the Bank of Japan (BOJ), which has been cautiously raising interest rates. 'A trade deal does allow more potential for the Bank of Japan to hike interest rates this year,' said Jane Foley, head of FX strategy at Rabobank. 'That's a yen positive and clearly makes a move back to 150 (yen per dollar) harder,' Foley said. 'When there was trade and political uncertainty, clearly they weren't going to do anything. 'Of course we haven't sidestepped all the political uncertainty, and that's going to stop the BOJ from making any hasty decisions, but no one was expecting anything hasty anyway,' Foley added. Moves in other currencies were pretty muted due to the uncertainty around tariffs, as well as doubts about how currencies would react even if there were there any greater certainty. The US dollar has been one of the biggest losers since Trump announced sweeping tariffs on trading partners on April 2, weakness which continued as those duties were suspended to allow further negotiations, but which has petered out somewhat this month. The euro was last down 0.1% on the day at US$1.1744 but still near a four-year high it touched at the start of the month. Sterling was up a touch at US$1.1354. In contrast to the euro, European equities rallied on hopes the trade deal with Japan could pave the way for more deals, including with Europe. Trump said negotiators from the EU would be in Washington today. The European Central Bank meets tomorrow, but is unlikely to have a dramatic effect on the currency and is expected to hold rates steady. Improved sentiment towards the global economy from the trade deal, as well as higher metal prices, boosted the Australian dollar, although sentiment remained cautious. The Aussie firmed 0.4% to US$0.6581.
