Yen Steady as Takaichi Vows Fiscal Expansion
The Japanese yen was little changed around 157.9 per dollar on Tuesday, remaining range-bound as Prime Minister Sanae Takaichi pushed forward with expansionary fiscal policies despite concerns over the weak currency and government funding. In her parliamentary address, Takaichi pledged to reduce the consumption tax on food products while stressing that the government would secure funding without issuing additional bonds, aiming to reassure financial markets. Meanwhile, investors awaited a series of economic reports due this week, including August data on wages, the current account and household spending, as well as September figures for consumer confidence and machine tool orders. Last week, a summary of opinions from the Bank of Japan’s September meeting showed growing concern about inflation exceeding the central bank’s 2% target, raising the possibility of another rate hike this year but providing little clarity on its timing ahead of policy meetings in October and December.
9 per dollar on Tuesday, remaining range-bound as Prime Minister Sanae Takaichi pushed forward with expansionary fiscal policies despite concerns over the weak currency and government funding. In her parliamentary address, Takaichi pledged to reduce the consumption tax on food products while stressing that the government would secure funding without issuing additional bonds, aiming to reassure financial markets. Meanwhile, investors awaited a series of economic reports due this week, including August data on wages, the current account and household spending, as well as September figures for consumer confidence and machine tool orders.
Last week, a summary of opinions from the Bank of Japan’s September meeting showed growing concern about inflation exceeding the central bank’s 2% target, raising the possibility of another rate hike this year but providing little clarity on its timing ahead of policy meetings in October and December.