The yen experienced its worst day since June 2022, dropping 1.9% to 146.26 per dollar, following comments from Japan's new Prime Minister Shigeru Ishiba. Ishiba stated that the economy is not ready for another interest rate hike, leading to significant market reactions. The Bank of Japan, led by Governor Kazuo Ueda, has been supporting the economy and will move cautiously regarding future rate hikes. Ishiba's remarks have dimmed hopes for a rate hike this year, causing Japanese stocks to rally, with the Nikkei 225 jumping by 2.5%. Chief Cabinet Secretary Hayashi clarified that Ishiba did not make specific policy requests to Ueda. Finance Minister Kato emphasized the importance of stable foreign exchange movements and close coordination between the government and the Bank of Japan. Ishiba also mentioned his aim for Japan to become an 'investment nation.'
Gist of new Japan PM Ishiba's policy speech in parliament https://t.co/6b0mRbdUrI
In his first policy speech to parliament on Friday, Prime Minister Shigeru Ishiba omitted some of the most divisive proposals he made during last month’s Liberal Democratic Party presidential campaign, instead prioritizing quickly actionable measures. https://t.co/7hCVX4i23q
Prime Minister Shigeru Ishiba said in a policy speech Friday he would create a disaster management agency and boost regional economies. https://t.co/OG2pkqTolu