• The Japanese Yen declined as PM Ishiba expressed that the current environment doesn’t require further interest rate increases.
• Japan’s Hayashi clarified that Prime Minister Ishiba did not request any specifics regarding monetary policy from BoJ Governor Ueda.
• Futures suggest less than a 50% chance of the BoJ implementing a 10 basis point rate hike by December.

The Japanese Yen (JPY) continues to decline on Thursday following straightforward comments on monetary policy from new Prime Minister (PM) Shigeru Ishiba, who met with Bank of Japan (BoJ) Governor Kazuo Ueda on Wednesday.

Japan’s Prime Minister Ishiba stated, "I do not believe that we are in an environment that would require us to raise interest rates further," according to Reuters. In the previous session, the Japanese Yen fell nearly 2% against the US Dollar (USD), marking its largest drop since February of last year.

Japan’s Chief Cabinet Secretary Yoshimasa Hayashi clarified on Thursday that “Prime Minister Ishiba did not ask BoJ Governor Ueda for any specifics regarding monetary policy during their meeting on Wednesday.” On Wednesday, Japan's Economic Revitalization Minister Ryosei Akazawa stated that PM Ishiba expects the Bank of Japan to conduct thorough economic assessments before considering another interest rate hike.