BoJ officials commenting on Tanken and the value of yen
|The Japan chief Cabinet Secretary Matsuno said that he believes that the BoJ Tankan survey shows that economy looking upward overall but issues from pandemics remain.
Another Bank of Japan official commented surrounding recent data ad said Japanese manufacturers that saw business conditions worsen mainly pointed to the impact of rising raw material prices, parts shortages.
Sentiment worsened for a wide range of sectors among non-manufacturers, it was stated, which mainly pointed to the impact of a resurgence in covid-19 infections, rising input costs.
Not many firms were responding to the Tankan talking about the direct impact of the Ukraine war, though the crisis likely affected firms via a rise in raw material costs. Tankan japan firms' inflation forecast 1 year ahead, at 1.8%, is highest on record.
Additionally, the official said that more firms in the Tankan survey saw a weak yen as a factor pushing up import costs rather than boost to earnings. Meanwhile, Mitsuhiro Furusawa, who was the head of currency intervention at Japan's Ministry of Finance, said that it is not good for the yen to keep dropping as it reflects Japan's competitiveness. ''Its meaningless to set a line in the sand for USD/JPY...speed of yen moves more important in gauging the authorities' alarm over a weak yen.''
The Japanese Finance Minister, Suzuki, said that FX stability is important and that sharp fx moves are undesirable. he adds that the government will take appropriate steps on fx policies and will be in close communication with the US & other currency authorities, based on international agreements. Suzuki said that yen's recent weakening could affect Japan's economy, although the BoJ has an inflation target, not a target for FX rates.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.