Economists at Mizuho Securities said that although the increase in US tariffs on Japanese goods may have a negative impact, the Bank of Japan is expected to continue to seek interest rate increases. The economists said in a research report: “Due to the risk of being criticized by the Trump administration for trying to depress the yen exchange rate, the Bank of Japan may maintain its position of considering further interest rate hikes to avoid financial market turmoil.” The USD/JPY exchange rate is currently at 147.40, and the Tokyo stock market closed at 145.59 on Monday. Japan's Finance Minister Katsushin Kato said on Tuesday that he will lead discussions with the US on foreign exchange related issues, while Japan's Minister for Economic Regeneration Akazawa Ryosei has been selected to be responsible for tariff negotiations.

Economists at Mizuho Securities said that although the increase in US tariffs on Japanese goods may have a negative impact, the Bank of Japan is expected to continue to seek interest rate increases. The economists said in a research report: “Due to the risk of being criticized by the Trump administration for trying to depress the yen exchange rate, the Bank of Japan may maintain its position of considering further interest rate hikes to avoid financial market turmoil.” The USD/JPY exchange rate is currently at 147.40, and the Tokyo stock market closed at 145.59 on Monday. Japan's Finance Minister Katsushin Kato said on Tuesday that he will lead discussions with the US on foreign exchange related issues, while Japan's Minister for Economic Regeneration Akazawa Ryosei has been selected to be responsible for tariff negotiations.