Japan PM Abe: Don't think Japan should maintain ultra-easy policy forever

Dhwani Mehta FXStreet

More comments flowing in from the Japanese PM Abe, via Reuters, this time on the Bank of Japan (BoJ) monetary policy and inflation outlook.

Key Headlines:

BoJ's price target is one measurement when guiding economic policy but the key is to create jobs.

Japan's inflation has yet to reach BoJ's price target, hope BoJ keeps efforts to meet the target.

I trust BoJ Governor Kuroda's handling of monetary policy.

Don't think Japan should maintain ultra-easy policy forever.

Up to the BoJ to decide when to end the easy policy.

Will proceed with next year's scheduled sales tax hike.

Will mull steps to support spending of durable goods like automobiles, ensure sales tax impact on economy is as small as possible.

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.

EUR/USD retreats toward 1.1500 despite ECB rate hike

EUR/USD stays under bearish pressure and declines toward 1.1500 in the American session on Thursday. Although the European Central Bank raised key rates by 25 bps after the June meeting, the pair struggles to hold its ground as US President Donald Trump's renewed threat to hit Iran weighs on sentiment and supports the US Dollar.

GBP/USD extends slide below 1.3350 on renewed USD demand

GBP/USD is falling below the 1.3350 level in the American session on Thursday. Increased hawkish Fed bets and looming Mideast geopolitical risks sponsor the latest leg up in the US Dollar, particularly after the Producer Price Index jumped to 6.5% YoY in May.

Gold challenges fresh 2025 lows below $4,100

Gold struggles to stage a rebound and trades below $4,100 in the American session on Thursday. Mixed producer inflation data from the US and a further escalation of tensions in the Middle East don't allow the precious metal to shake off the bearish pressure.

Crypto Today: Bitcoin, Ethereum, XRP rebound broadens despite continued US-Iran strikes

Bitcoin steadies its recovery on Thursday, edging higher toward $63,000 despite incessant capital outflows. Meanwhile, altcoins, including Ethereum and Ripple, exhibit subtle rebound signs, trading above $1,650 and $1.12, respectively.

Indonesia surprise rate hike may not be enough to save the Rupiah

The surprise rate hike from Bank Indonesia, aimed at protecting the Indonesian Rupiah from sliding further, seems to have worked for now. The rate increase definitely helps, but there’s more work to do if Jakarta wants to ease investors’ concerns for good.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.