- The EUR/JPY pair is declining as the Yen finds support, fueled by investors seeking stability in response to growing international trade uncertainties.
- According to US Treasury Secretary Scott Bessent, official trade discussions with Japan are still in the preliminary stages.
- Japanese Finance Minister Katsunobu Kato voiced disapproval of US tariffs at the G7 meeting, calling them “highly disappointing.”
EUR/JPY is giving back some of the ground it recovered in the prior trading session, hovering near the 161.90 level in Thursday’s Asian trading. The currency pair is losing value as the Yen benefits from increased demand, with investors seeking safer investments due to renewed worries about international commerce disputes.
US Treasury Secretary Scott Bessent tempered expectations regarding advancements in trade relations between the US and Japan, indicating that formal discussions have not yet started and no specific tariff reductions have been suggested. Further contributing to the cautious mood, reports suggest the US informed Japan’s trade representatives that Tokyo will not be granted special consideration under the existing tariff structure, despite requests for a policy reassessment.
The Bank of Japan’s (BoJ) most recent Financial System Report, published on Wednesday, indicated that the financial system remains generally stable but stressed the importance of remaining alert to potential dangers arising from market volatility, particularly those connected to Japanese banks’ equity investments.
