Where Is the Japanese Yen Heading? Public Attention Turns to Meeting Between High Minister and Ueda

Behind the Meeting: Policy Coordination Challenges

According to the Mainichi Shimbun, Japanese Prime Minister recently met with BOJ Governor Kazuo Ueda. While Ueda emphasized that no specific monetary policy was discussed, the Prime Minister's concerns about further rate hikes are evident.

Market Reaction: Yen Weakens

Following the news, the yen weakened against both the dollar and the euro. Market analysts speculate that if the government and the BOJ fail to align on interest rate decisions, it could complicate future policy execution.

• The Prime Minister hopes the BOJ will collaborate with the government to achieve inflation targets.
• Rising living costs might push Japan to raise rates in March or April.
• Ueda emphasized that the discussion focused on economic conditions, with no specific policy demands made.