USD/JPY and yen crosses have fallen a little in the wake of Japan’s Cabinet approving the 21.3tln yen economic stimulus package:
17.7tln JPY of fresh spending via extra budgetmeasures ranging from price relief to investment support in priority sectorsbiggest portion will go to price relief, ¥11.7 trillion, subsidies, cash handouts and such
This is the largest round of extra spending since the pandemic.
If you’ve been following along today you’ll have noted the multiple rounds of verbal intervention. These had very little yen impact but did cut a little from JGB yields.
Yen finally responding now. In a very limited way!
This article was written by Eamonn Sheridan at investinglive.com.