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Japan’s Finance Minister Shunichi Suzuki announced on Tuesday that the government will closely monitor the impact of the strengthening yen on the economy and take appropriate actions in response. Suzuki emphasized the importance of market-driven currency rates based on economic fundamentals, while also expressing concerns about volatile fluctuations.
The recent decline of the U.S. dollar to a more than one-year low against the yen has raised speculation about a potential 50-basis-point interest rate cut by the Federal Reserve. Suzuki acknowledged the potential positive and negative effects of a stronger yen on the economy, with impacts on exporters’ overseas sales and increased import costs for households and businesses.
Despite the yen trading above the average assumption of 145 to the dollar, Japanese firms have maintained healthy earnings and financial conditions. Suzuki pledged to continue analyzing the effects of foreign exchange movements and price changes on the economy and people’s livelihoods, ensuring appropriate responses are implemented.
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Emma Collins, graduated in Financial Economics from the University of Chicago in the USA in 2016. She has since worked at an asset management firm in New York, where she specializes in investment strategies and portfolio management. Emma has a keen interest in financial analysis and has published several articles in renowned financial journals. Her work focuses on providing actionable insights to investors, and she is known for her forward-thinking approach to managing financial portfolios.
