Japan debates fresh cash payouts to help the poor cope with covid pandemic – Reuters

Dhwani Mehta FXStreet

The Japanese government and ruling party officials are mulling additional cash handouts to low-income households to help them combat the blow from the coronavirus pandemic, Reuters reports, citing two sources with direct knowledge of the matter.

“The amount of the potential payout has not been fixed, but government spending is likely to be much lower than a previous package that offered cash handouts of 100,000 yen ($940) to all citizens,” the sources added.

The debate is on the table after some ruling party lawmakers called for JPY100,000 cash payouts for the poor.

The previous cash payouts cost the government JPY12.9 trillion ($120 billion), which was financed by deficit-covering bonds.

USD/JPY hovers around 106.50

USD/JPY holds steady just above 106.50 amid a recovery in the risk sentiment and a broadly weaker US dollar. The spot hit a daily high of 106.70 and a day’s low at 106.36.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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