Japan MoFofficial: Not much yen strengthening overnight because US interest rates did not fall much

An official at the Japanese Ministry of Finance said on Thursday that market participants were waiting for US President Donald Trump to announce policy steps, according to Reuters.

There was not much strengthening in the yen overnight because US interest rates did not fall much, the official added.

Key notes

Japan MoFofficial says people are waiting for trump to announce policy steps.
Japan MoF official says not much yen strengthening overnight because US interest rates did not fall much.

FX implications

The yen is being sourced as a safe haven as global equities continue to plummet. following Wall Street's decline, Japan's benchmark Nikkei average .N225 opened down 1.81 percent at 19,064.51 on Thursday, while the broader Topix .TOPX shed 1.77 percent at 1,360.61. This should continue to pressure USD/JPY.