Intra-Day Market Moving News and Views USD/JPY
26 Jul 2016 01:18GMT
USD/JPY - ...... The Japanese yen jumped broadly ahead of Tokyo open after Nikkei newspaper of a massive stimulus measure, dlr tumbled from 105.89 (Australia) to as low as 104.77.
To fund part of the package, the government will compile a supplementary budget for the current fiscal year of around 2 trillion yen, according to Nikkei newspaper. The rest will be funded in the budget for the next fiscal year beginning in April 2017 next year.
The Finance Ministry had initially earmarked 3 trillion yen for direct spending from national and local governments under its draft fiscal stimulus plan. But the amount was doubled on requests for bigger spending by government officials and ruling party lawmakers, the Nikkei said without citing sources.
The size of spending could increase further as the government presents the draft stimulus plan for negotiations with ruling party lawmakers from Tuesday, the paper said.
The direct spending would be part of a massive stimulus package to bolster the economy, which would also consist of state subsidies to private companies and lending programmes from quasi-government financial institutions.
The total size of the package, which could be announced as soon as Aug. 2, could exceed 20 trillion yen, reported Nikkei newspaper.
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