News Headline Summary

Japanese Economic Minister Amari says Govt.'s top economic council can serve as a venue to scrutinise progress in meeting government and Bank of Japan policy goals

Says

- A policy accord with BoJ will say clearly what govt. and BoJ must do for the economy.
- JPY has corrected to level in line with fundamentals.
- An excessively weak JPY has negative effects on livelihoods and is not good for the economy.
- Co.s must be able to overcome some forex disadvantages.

Reaction details (20:41)

- In an immediate reaction to this comments, USD/JPY spiked lower by 28 pips from 89.57 to 89.29, trades 89.31 (-17pips) last.

Analysis details (20:52)

- A weaker JPY is not beneficial for importing resources such as oil and food.
- This is the first time we heard comments from LDP government on the negative effects of a weaker JPY.

14 Jan 2013 - 20:27 - Forex - Source: Newswires

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