The market is focused on dollar-yen, and the prime minister's denial of Takaichi's comments on yen weakness is expected to make measures to restrain yen weakness more realistic. Future foreign exchange movements could change depending on how the statement is interpreted.
Markets are closely watching the outlook for dollar-yen and remain susceptible to international market trends and domestic political comments. In particular, the focus is on how strongly Japan's intention to intervene in the foreign exchange market and restrain yen weakness is conveyed to markets.
Following reports that the prime minister denied Takaichi's comments on yen weakness, some observers believe that efforts to counter yen weakness are becoming more realistic. Market participants point out that statements and actions demonstrating coordination between the government and the Bank of Japan could help stabilize the yen.
Future factors include domestic and overseas economic data and energy-market trends. Dollar strength and higher oil prices could affect dollar-yen, potentially heightening tensions in the foreign exchange market.
With many readers tracking changes in the facts rather than making investment decisions, markets are expected to continue watching the government's policy of restraining yen weakness and the market's reaction.