Japan's Finance Minister Pledges Vigilance Against Currency Movements

In Tokyo, Japan's Finance Minister Katsunobu Kato emphasized the government's determination to closely monitor currency movements. During a regular press conference on Tuesday, Kato stated that officials intend to watch these movements, particularly those that could arise from speculative transactions, with increasing vigilance.

The Japanese yen is currently experiencing a decline, reaching three-month lows. This downturn is partly attributed to the ruling coalition losing its parliamentary majority, leading to speculation about potential challenges for the Bank of Japan. Concerns are growing that political turmoil could hinder efforts to move the economy away from its long-standing reliance on monetary stimulus.

The election results have also sparked predictions that the new government may need to collaborate with smaller opposition parties. In an effort to gain public support, increased spending is anticipated. Addressing these developments, Kato outlined plans for a significant economic package and the development of an additional budget. This strategy aims to tackle the economic challenges the country is facing, incorporating the policies of parties that are currently not part of the coalition bloc.