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23 Feb 2015
Advisor to PM Abe states that yen at comfortable level – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, notes that Etsuro Honda, advisor ro Japan’s PM Abe quoted overnight that Yen was at a comfortable level for Japan’s economy between 117.00-120.00, which should help boost consumer spending and higher corporate profits.
Key Quotes
“The yen has remained at weaker levels in the Asian trading session undermined by the ongoing improvement in global investor risk sentiment. Etsuro Honda an advisor to Prime Minister Abe has stated overnight that the yen has weakened to a “comfortable level” for the Japan’s economy between 117.00 and 120.00.”
“The weak yen should help boost consumer spending eventually as higher corporate profits will filter through to wage growth. He also added that “there’s no good reason to apply additional easing now” but “at the same time, the BoJ shouldn’t let concern about weakening the yen further stop it from expanding policy if needed”.”
“It has also been reported overnight that The Japanese Trade Union Confederation known as Rengo will call to increase monthly pay by more than 4% excluding overtime and bonuses. The group’s president Koga stated that over 2% of this figure will be for base pay, with the remainder linked to seniority or time served at a company.”
“Last year, Rengo estimates that some of their 6.7 million members received a boost in monthly pay of about 2.1% after last year’s spring wage talks after adjusting for both base wages and seniority which was the highest since 1999.”
Key Quotes
“The yen has remained at weaker levels in the Asian trading session undermined by the ongoing improvement in global investor risk sentiment. Etsuro Honda an advisor to Prime Minister Abe has stated overnight that the yen has weakened to a “comfortable level” for the Japan’s economy between 117.00 and 120.00.”
“The weak yen should help boost consumer spending eventually as higher corporate profits will filter through to wage growth. He also added that “there’s no good reason to apply additional easing now” but “at the same time, the BoJ shouldn’t let concern about weakening the yen further stop it from expanding policy if needed”.”
“It has also been reported overnight that The Japanese Trade Union Confederation known as Rengo will call to increase monthly pay by more than 4% excluding overtime and bonuses. The group’s president Koga stated that over 2% of this figure will be for base pay, with the remainder linked to seniority or time served at a company.”
“Last year, Rengo estimates that some of their 6.7 million members received a boost in monthly pay of about 2.1% after last year’s spring wage talks after adjusting for both base wages and seniority which was the highest since 1999.”