During the Asian trading session today (Nov. 18), the Japanese yen fell to around 155.37 against the US dollar, hitting a new low in over nine months. As of the time of reporting, the yen stands at 155.26 against the US dollar.
Japanese Finance Minister Satsuki Katayama expressed deep concern about recent exchange rate trends, noting one-sided and rapid movements in the foreign exchange market. However, he refrained from commenting on specific exchange rate levels. He stated that the government is closely monitoring any excessive or disorderly fluctuations in the currency market with a high sense of urgency, including those triggered by speculative activities.
A statement from the Prime Minister's Office indicated that Japanese Prime Minister Sanae Takaichi meets with the Governor of the Bank of Japan at 3:30 pm Japan time today. Markets are closely watching whether Takaichi will raise objections regarding the future pace and direction of interest rate hikes. Additionally, the scale and composition of Japan's fiscal spending and stimulus measures are also under scrutiny, including whether these measures will fundamentally increase Japan's fiscal deficit through methods such as tax cuts or whether they will include future-oriented investments.
Earlier, Nomura and Goldman Sachs issued warnings about the depreciation pressure on the yen. Nomura analysts cautioned that as China-Japan relations rapidly deteriorate, China's issuance of travel warnings to Japan could further exert downward pressure on the yen. Goldman Sachs Group stated that as investors grow increasingly concerned about the Japanese government potentially rolling out economic stimulus measures exceeding expectations, the return of Japan's "fiscal risk premium" could put pressure on long-term Japanese government bonds and the yen.
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