Addressing the media on Monday, Japanese Prime Minister (PM) Shinzo Abe said, “our priority now is to do everything to put the economy on the recovery path”

Additional comments

“The debt balloon can be maintained forever.”

“It is not that we can spend unlimited amounts without problems.”

“We need to maintain market trust over Japan’s finances.”

“Once the economy normalizes, we hope to resume efforts to restore fiscal health.”

Market reaction

PM Abe’s remarks are adding to the recent strength in the yen, as USD/JPY attacks 107.00, shedding 0.25% so far.

Heightening tensions over the rise in the new coronavirus cases globally, with Beijing reinstituting harsh lockdown measures to prevent the second wave, is weighing heavily on the risk sentiment.