Atsushi Mimura, Japan’s Vice Finance Minister for International Affairs, commented on Tuesday that the outlook for the US economy largely depends on the macroeconomic policies of US President Donald Trump. Mimura emphasized the importance of closely monitoring whether China’s recent export strength will continue, signaling the potential impact of global trade dynamics.
He also refrained from commenting on specific cases, such as the Nippon Steel-US situation, and remarked that Japan’s economy beyond April does not appear “that bad,” with business investments providing support. However, he noted that Japan’s real consumption remains weak and that the moves of the next US administration will be crucial, particularly concerning foreign exchange policies. Mimura declined to provide any insights into the Bank of Japan‘s (BoJ) monetary policies.
Market Reaction: USD/JPY Struggles at 155.00
Mimura’s remarks have led to a notable pullback in the USD/JPY pair, which is now flirting with the 155.00 level, down 0.35% on the day as of writing. Investors are likely adjusting their positions ahead of the BoJ’s upcoming policy meeting and in response to the comments on Japan’s economic outlook and the broader US policy landscape.
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