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19.10.202603:11:09UTC+00Yen Steady as Ueda Signals Inflation Near Target

The Japanese yen was little changed at around 158 per dollar on Monday, trading in a narrow range after Bank of Japan Governor Kazuo Ueda said underlying inflation was already approaching the central bank’s 2% target, a statement seen as mildly hawkish. Ueda linked the persistence of inflationary pressures to a moderate economic recovery and tight labor market conditions.

At the same time, Prime Minister Sanae Takaichi pledged to manage the scale of annual government debt issuance “appropriately,” underscoring that fiscal discipline and economic resilience are critical to supporting the yen and maintaining stable public finances. She emphasized the need to balance economic growth with fiscal responsibility as Japan confronts a debt burden of about $7 trillion—the largest among advanced economies—in an effort to reassure investors.

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