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Japan top FX diplomat says that Trump’s policies are basically inflationary

January 21, 2025 at 04:10AM

Trump’s proposed tax, tariff, and immigration policies are basically inflationary

Trump administration might revise those policies at some point if inflation accelerates

Don’t think there’s any need to change G7 commitment on currencies

Closely monitoring FX moves on a daily basis

Volatile FX moves are not desirable

Just some token remarks there by Mimura. Falling yields have been a key contributor to the fall in USD/JPY this week but also as traders are lining up for the BOJ decision on Friday. The odds of a 25 bps rate hike are at ~88% currently. That is a notable change to the coin flip pricing from around two weeks back.

This article was written by Justin Low at www.forexlive.com.

Japan top FX diplomat says that Trump’s policies are basically inflationary