Atsushi Mimura, Japan’s Vice Finance Minister for International Affairs and senior foreign exchange official, shared key insights on Tuesday regarding Japan’s economic outlook and US policy direction.
Mimura emphasized that the future of the US economy depends significantly on the macroeconomic policies enacted by President Donald Trump. He also pointed out the importance of monitoring whether China’s recent export strength will persist, though he refrained from commenting on specific issues, such as the case between Nippon Steel and the US.
Regarding Japan’s economy, Mimura expressed cautious optimism beyond April, citing strong business investments as a supportive factor, though he noted that real consumption in the country remains weak.
When asked about the potential impact of the new US administration on foreign exchange (forex) markets, Mimura stressed the need for close monitoring of US policy developments. He remarked that US tax, tariff, and immigration policies proposed by President Trump could have inflationary effects, and that these policies might be revised if inflation accelerates.
On the topic of the Bank of Japan (BoJ), Mimura declined to comment on its monetary policies, while affirming Japan’s commitment to the G7 stance on currencies. He reiterated that volatile forex movements are undesirable and that Japan is closely observing daily fluctuations in currency markets.
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