Yen Set for Fourth Consecutive Weekly Decline
The Japanese yen weakened to around 158 per dollar on Friday, heading for a fourth consecutive weekly loss amid persistent pressure from the wide interest rate gap between the US and Japan, as relatively low domestic rates and the country’s substantial debt burden continued to weigh on the currency. Meanwhile, data showed that Japan’s personal spending fell for a ninth consecutive month in August, as consumers remained cautious amid persistent inflation. On the monetary policy front, BOJ board member Ayano Sato, who previously opposed the central bank’s September rate hike, said this week she favored a gradual approach to raising interest rates in several stages, reinforcing expectations of further policy tightening. Elsewhere, Prime Minister Sanae Takaichi continued to pursue expansionary fiscal policies despite concerns over the weak yen and elevated bond yields, pledging to cut the consumption tax on food.
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The Japanese yen weakened to around 158 per dollar on Friday, heading for a fourth consecutive weekly loss amid persistent pressure from the wide interest rate gap between the US and Japan, as relatively low domestic rates and the country’s substantial debt burden continued to weigh on the currency. Meanwhile, data showed that Japan’s personal spending fell for a ninth consecutive month in August, as consumers remained cautious amid persistent inflation.
On the monetary policy front, BOJ board member Ayano Sato, who previously opposed the central bank’s September rate hike, said this week she favored a gradual approach to raising interest rates in several stages, reinforcing expectations of further policy tightening. Elsewhere, Prime Minister Sanae Takaichi continued to pursue expansionary fiscal policies despite concerns over the weak yen and elevated bond yields, pledging to cut the consumption tax on food.