Yen Falls, What's the New Japanese Prime Minister's Stimulus Package?
The Japanese yen weakened to 152 per US dollar on Thursday, approaching its lowest level in eight months. This weakening occurred amid speculation that the new Prime Minister, Sanae Takaichi, will soon announce a massive stimulus package, possibly next month. This plan is expected to be larger than last year's 13.9 trillion yen package, with the aim of helping alleviate inflationary pressures felt by the public. Takaichi is also expected to support loose fiscal and monetary policies to boost the Japanese economy.
Meanwhile, the Bank of Japan is expected to keep interest rates steady at its meeting next week, with a possible rate hike predicted in January. Meanwhile, the market is also closely monitoring developments in trade relations between the US and China. Despite reports of US plans to restrict software exports to China, President Donald Trump's statement that his meeting with President Xi Jinping is already scheduled has somewhat eased concerns about trade tensions. (az)
Source: Newsmaker.id
