Commenting on the Japanese economic outlook, Bank of Japan (BOJ) Governor Haruhiko Kuroda said that the recovery will become clearer as the impact of the pandemic subsides.
Additional comments
Japan's economy remains in severe state but picking up as a trend.
Mechanism driving Japan’s economic recovery not broken.
Exports, output continue to increase.
Consumption likely to rebound ahead with support from pent-up demand.
Timing of consumption recovery to depend largely on developments regarding pandemic.
Exports, output likely to slow near-term as factory shutdowns in southeast Asia affect Japan manufacturers.
Japan prices to rise ahead but pace likely to be moderate.
BOJ won't hesitate to take additional easing steps if needed.
BOJ must continue focusing on pandemic response as economic uncertainty remains high.
Market reaction
USD/JPY remains at the mercy of the dynamics in the US Treasury yields, as it remains on the back foot so far this Monday.
The spot was last seen trading at 110.62, down 0.09% on the day.