Japan’s Kihara: Will watch market moves with high sense of urgency
Japan’s Deputy Chief Cabinet Secretary Minoru Kihara said during the European trading session on Wednesday that the administration is closely tracking market moves with high sense of urgency. Kihara added, “Markets move on various factors.”
Deputy Chief Cabinet Secretary Minoru Kihara of Japan emphasized the administration's close monitoring of market movements with great urgency during the European trading session on Wednesday. He stated, "Markets move on various factors." The Japanese Yen (JPY) did not experience a significant impact following Kihara's remarks. Currently, USD/JPY is trading down 0.4% to around 158.00.
The Japanese Yen is a major traded currency whose value is influenced by the Japanese economy's performance, the Bank of Japan's policy, the difference between Japanese and US bond yields, and the risk sentiment among traders. The Bank of Japan, which has a mandate for currency control, is a critical factor in determining the Yen's value.
The Bank of Japan's actions, such as intervention in currency markets to lower the Yen's value, are rare due to political concerns about its main trading partners. The Bank of Japan's ultra-loose monetary policy from 2013 to 2024 led to the Yen's depreciation against its major peers due to a growing policy divergence between the Bank of Japan and other central banks.
The gradual unwinding of this ultra-loose policy and interest-rate cuts in other major central banks have provided some support to the Yen. The Yen is frequently viewed as a safe-haven investment, so its value may increase during market turmoil due to its perceived reliability and stability.
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