TOKYO, March 30 : Japan's top currency diplomat, Atsushi Mimura, warned of 'decisive' measures if the yen continues to weaken, signaling a possible rate hike. The yen fell past 160 per dollar, its weakest since July 2024, amid rising oil prices from the Iran war.
Bank of Japan Governor Kazuo Ueda said the central bank will monitor yen movements closely, suggesting inflationary pressures could justify raising interest rates soon. The BOJ ended a decade of stimulus in 2024 and raised rates to 0.75%, its highest in 30 years, as it aims to achieve a 2% inflation target.
Rising oil prices and a weak yen are adding to inflationary pressures, with some officials warning of stagflation risks. The Nikkei stock index and Japanese government bond yields hit recent highs as markets react to the central bank's signals.