Japanese Finance Minister Fujii today reiterated he never meant to support a rise in the yen or downplay the importance of Japan’s exports, telling a financial affairs committee “I have only opposed a currency devaluation policy.”
- Good to see long-term rates falling
- Need to watch long-term rate moves very carefully
- Recent long-term rate rise not due to improvements in economy
- Rate rise that doesn’t reflect economic strength is negative for economy
- Important to respect BOJ’s independence
- Government is on good terms with BOJ Gov Shirakawa
USD/JPY sits at 89.10, marginally easier from a North American close Wednesday around 89.30.