Yen Weakens, What's Behind the BOJ's Move?
The Japanese yen exchange rate fell to around 155.7 per US dollar on Tuesday (December 2nd) after strengthening for three sessions. This weakening occurred because many traders chose to take profits from the previous rally. Previously, the yen had strengthened due to growing speculation that the Bank of Japan (BOJ) could raise interest rates in the near future, signaling a possible change in its monetary policy direction.
Finance Minister Satsuki Katayama said that the government and the BOJ share a similar economic outlook. He also emphasized the importance of close coordination between fiscal and monetary policy to achieve the 2% inflation target supported by wage increases. This comment came after BOJ Governor Kazuo Ueda stated that he was optimistic about the Japanese economy and that the BOJ would carefully consider the possibility of an interest rate hike at its upcoming December meeting. (az)
Source: Newsmaker.id
