Connect with us

Economy

Japan govt, central bank reiterate concern over sharp falls in yen

Published

on

2/2

© Reuters. FILE PHOTO: A Japan Yen note is seen in this illustration photo taken June 1, 2017. REUTERS/Thomas White/Illustration

2/2

By Leika Kihara and Kantaro Komiya

TOKYO (Reuters) – Tokyo is concerned about sharp falls in the yen currency and stands ready to “respond appropriately” if needed, Japan’s top government spokesperson said on Monday, issuing a fresh warning to markets.

The remark echoed Friday’s joint statement by the government and central bank, but failed to avert a plunge in the yen to 135.22 against the dollar, the currency’s lowest level since October 1998.

“It’s important that currency rates move in a stable way, reflecting fundamentals. But there have recently been sharp yen declines, which we are concerned about,” Chief Cabinet Secretary Hirokazu Matsuno told a regular news conference.

“We are ready to respond appropriately as needed, while communicating closely with each country’s currency authorities.”

Matsuno declined to comment on whether Tokyo would intervene to curb the sharp slump in the yen, however.

Unlike other major central banks, which are flagging aggressive interest rate hikes to tackle inflation, the Bank of Japan (BOJ) has repeatedly committed to keeping rates low, making Japanese assets less attractive for investors.

That increasing policy divergence has sent the yen down more than 15% against the dollar since early March.

Central bank chief Haruhiko Kuroda also warned of the disadvantages of yen declines, shifting away from his long-held stance that the currency’s weakness was generally good for the export-reliant economy.

“The yen’s recent sharp declines are negative for Japan’s economy and therefore undesirable, as they make it hard for companies to set business plans,” Kuroda, the bank’s governor, told parliament on Monday.

“The BOJ will communicate closely with the government, and scrutinise the impact currency moves have on the economy and prices.”

Kuroda repeated his pledge to keep monetary policy ultra-loose to support an economy yet to fully recover from the blow dealt by the coronavirus pandemic.

The yen briefly rallied late on Friday after the rare joint statement, seen as the strongest warning to date that Tokyo could intervene to support the currency.

But the currency lost momentum as the dollar strengthened after Friday’s U.S. inflation data reinforced market expectations for the Federal Reserve to aggressively raise interest rates in the fight on surging inflation.

Economy

Oil Russia ban news: Russia will ban the sale of its oil to countries that have imposed a price ceiling

Published

on

oil Russia ban

Will Russia sell oil to Europe? The administration of President Vladimir Putin is preparing an order prohibiting Russian companies and any trader from buying Russian oil to sell raw materials to countries and companies that have imposed a price ceiling on Moscow. Bloomberg news agency wrote this, citing a report from sources.

“The Kremlin is preparing a presidential decree banning Russian companies and any traders buying national oil from selling it to anyone who participates in the price ceiling,” the publication wrote.

According to the newspaper’s interlocutors, this would prohibit any mention of the price ceiling in contracts for Russian crude, as well as transferring it to countries that have joined the price ceiling for the natural resource.

In the first half of September, the press service of the US Treasury Department said that the USA, together with its allies from G7 (Great Britain, Germany, Italy, Canada, France and Japan) and the European Union (EU) would impose a ban on marine transportation of Russian oil on December 5 and oil products – on February 5.

Earlier we reported that EU negotiations on limiting the prices of Russian oil reached a deadlock today.

Continue Reading

Economy

EU talks on restrictions on Russian crude oil prices today stalled

Published

on

russian crude oil price today

Negotiations between the European Union countries about the “ceiling” of Russian crude oil prices today reached an impasse; Bloomberg reported, according to its sources.

Representatives of the bloc cannot reach an agreement on the ceiling price of Russian oil. According to the agency, the proposed European Commission limit of $65-70 per barrel, Poland and the Baltic countries believe “too generous,” while Greece and Malta, which is actively engaged in transporting fuel, do not want the limit to fall below $ 70. Recall that the Russian response to the oil price cap was negative. The Russian government has officially said that it will only sell oil at market prices.

“We are looking for ways to make this solution work and we are trying to find a common ground to implement it in a perfectly pragmatic and efficient way, while avoiding that it may cause excessive inconvenience to the European Union,” said German Chancellor Olaf Scholz.

Earlier, we reported that the SEC fined Goldman Sachs $4 million for non-compliance with ESG fund principles.

Continue Reading

Economy

More than 50% of Germans said they had given up shopping for new clothes and electronics. Is Germany’s economy failing?

Published

on

is germany's economy failing

Die Welt newspaper cited a survey by the consulting company EY and said that about 56% of Germans who took part in the survey said that they had practically refused to buy new clothes.

Also, 56% of German consumers reported that they now refrain from buying televisions, smartphones, laptops and game consoles. Also, nearly one in two now uses less gasoline, and one in four said they are saving on medications.

What caused the economic crisis in Germany? The main reason is the war in Ukraine and the resulting sanctions by the EU. Also, every second respondent reported that at the moment he could buy only the essentials. According to EY analysts, German households plan to further reduce spending in the coming months. In particular, they plan to save money on food delivery and entertainment.

Earlier, we reported that prices for liquefied natural gas in Asia reached their highest since October.

Continue Reading

Trending

©2021-2022 Letizo All Rights Reserved