Japan PM Kishida: Closely watching forex moves' impact on the economy

Responding to an opposition lawmaker’s question on how the government would respond to excessive yen declines, Japanese Prime Minister Fumio Kishida told parliament that they are closely watching forex moves' impact on the economy.

Additional quotes

Yen weakening would help boost exports.

Weak yen would also increase corporate costs by pushing up import prices.

Want to expand current tax incentive scheme aimed at prodding firms to raise wages, such as targeting broader firms.

Must deploy fiscal stimulus flexibly but does not mean no problem with increasing debt balance indefinitely.

Must win market trust in Japan’s finances to avoid risk of default.

Market reaction

USD/JPY has bounced off a dip to 113.01, now trading around 113.30, as the US dollar gets a mild boost amid persistent risk-off flows. The spot is modestly flat on the day.