Japan's Aso says that USD would rise if US-Japan rate differential reach 3%

Further comments by Japan's finance minister Taro Aso

  • Trump tax cuts, higher spending will lead to fiscal deficit
  • US interest rates will undoubtedly rise in such an event

There is still some way to go before the gap reaches 3% (Japan's key short term rate is -0.1%) but this obviously is an attempt to try and jawbone the yen lower. His key sentence is that "historically, the dollar has always risen against the yen" when the differential reaches 3%.

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