Yamaguchi Akio (山口 明夫), representative secretary general of the Japan Association of Corporate Executives, said at a press conference on the 1st that the possibility that the interest-rate differential with the United States could affect the yen exchange rate should be watched closely. Interest in the yen's movements has grown against the backdrop of the yield on newly issued 10-year Japanese government bonds rising into the 3% range.
At a press conference on the 1st, Yamaguchi Akio (山口 明夫), representative secretary general of the Japan Association of Corporate Executives, referred to the yield on newly issued 10-year Japanese government bonds, a key indicator of long-term interest rates, temporarily rising into the 3% range. He said the interest-rate differential with the United States would affect foreign exchange rates and indicated that he would closely monitor the yen's movements. He also said Japan was being affected by the global trend of rising interest rates.
Yamaguchi Akio (山口 明夫) indicated that the pace of Japan's interest-rate increases was "within the range anticipated by markets and companies," while citing instability in the Middle East, high prices and concerns about countries' fiscal positions as factors behind the global rise in interest rates. He also pointed out that remarks reportedly made by U.S. Treasury Secretary Scott Bessent (ベセント) urging the Bank of Japan to raise interest rates had contributed to the rise in Japanese interest rates, and said he expected the Bank of Japan to implement appropriate monetary policy.
Key issues going forward include movements in the interest-rate differential between the United States and Japan and the resulting foreign-exchange movements, the appropriateness of the Bank of Japan's monetary policy, and the longer-term outlook for the impact of global interest-rate trends on the yen exchange rate. Market participants are prepared to closely monitor the extent to which a widening interest-rate differential contributes to yen depreciation and how countries' fiscal management affects financial conditions.
Against the backdrop of the relationship between U.S. interest-rate trends and foreign exchange, this report provides information for domestic companies and market participants as they assess the yen's future movements.
The underlying news article focuses on Yamaguchi Akio's (山口 明夫) remarks and market interest-rate trends.