The report from Mainichi Shimbun suggested that Takaichi’s opposition to near-term tightening could complicate the Bank of Japan’s policy timeline, as coordination with the strengthened administration becomes more delicate. Ueda, however, clarified that the discussion broadly covered economic and financial developments, and the Prime Minister did not make any specific monetary policy requests.
Japanese Government Comments and Trade Concerns
Japan’s Finance Minister Satsuki Katayama added that the government would carefully review the US Supreme Court’s recent tariff ruling. She reiterated that Japan would steadily implement its US-bound investment package, while noting that existing US tariffs on automobiles remain in effect.
US Dollar Rebounds Amid Market Volatility
The USD/JPY pair was further supported by a rebound in the US Dollar (USD) after losses over the previous two sessions. However, foreign investors’ caution amid escalating US trade uncertainty could limit further gains. Traders are also awaiting key US economic data, including the ADP Employment Change four-week average, and speeches from Federal Reserve officials, which could influence near-term USD movements.
New US Tariff Threats
Compounding market volatility, the Donald Trump administration is reportedly considering additional national security tariffs on several industries following a Supreme Court ruling that invalidated several second-term levies. These potential measures, to be implemented under Section 232 of the Trade Expansion Act of 1962, are separate from the 15% global tariff announced last Saturday, signaling continued uncertainty for global trade and financial markets.
The combination of Yen weakness, US Dollar recovery, and geopolitical trade risks contributed to the near 1% gain in USD/JPY, highlighting market sensitivity to both domestic Japanese policy signals and evolving US trade policies.