Japan’s Prime Minister Shigeru Ishiba mentioned on Friday that there was no change in Japan’s stance on US tariffs and its demand that they be eradicated.
Key quotes
No change to our stance on U.S. tariffs.
Mentioned U.S. tariffs with President Trump.
Mentioned diplomacy, and safety with Trump as effectively.
There may be an event once I’ll go to the U.S. for in-person talks with President Trump.
No change to our stance of demanding the elimination of tariffs.
No change to our coverage of speaking with the U.S. about creating U.S. jobs.
Market response
On the time of writing, USD/JPY is buying and selling 0.42% decrease on the day at 143.40.
Japanese Yen FAQs
The Japanese Yen (JPY) is without doubt one of the world’s most traded currencies. Its worth is broadly decided by the efficiency of the Japanese financial system, however extra particularly by the Financial institution of Japan’s coverage, the differential between Japanese and US bond yields, or threat sentiment amongst merchants, amongst different components.
One of many Financial institution of Japan’s mandates is forex management, so its strikes are key for the Yen. The BoJ has immediately intervened in forex markets generally, typically to decrease the worth of the Yen, though it refrains from doing it usually on account of political issues of its principal buying and selling companions. The BoJ ultra-loose financial coverage between 2013 and 2024 brought on the Yen to depreciate in opposition to its principal forex friends on account of an rising coverage divergence between the Financial institution of Japan and different principal central banks. Extra just lately, the progressively unwinding of this ultra-loose coverage has given some help to the Yen.
Over the past decade, the BoJ’s stance of sticking to ultra-loose financial coverage has led to a widening coverage divergence with different central banks, significantly with the US Federal Reserve. This supported a widening of the differential between the 10-year US and Japanese bonds, which favored the US Greenback in opposition to the Japanese Yen. The BoJ resolution in 2024 to progressively abandon the ultra-loose coverage, coupled with interest-rate cuts in different main central banks, is narrowing this differential.
The Japanese Yen is commonly seen as a safe-haven funding. Because of this in instances of market stress, buyers usually tend to put their cash within the Japanese forex on account of its supposed reliability and stability. Turbulent instances are more likely to strengthen the Yen’s worth in opposition to different currencies seen as extra dangerous to put money into.
