Finance

Japan committed to act appropriately on weak yen: finance minister

Published

2 years ago

April 25, 2024

Japan committed to act appropriately on weak yen: finance minister

Finance Minister Shunichi Suzuki said Thursday there is no change “at all” in the Japanese government’s stance that it will act appropriately to address the weakening of the yen after it slipped past 155 to the U.S. dollar

Speaking in parliament, Suzuki said the government is carefully monitoring currency market developments but declined to comment further, amid market vigilance over a possible yen-buying dollar-selling operation to slow the Japanese currency’s fall.

“We are closely watching market developments. There is no change at all in our resolve to respond appropriately based on this,” Suzuki said.

The finance chief has repeatedly issued verbal warnings about the yen’s volatility, threatening to take appropriate action without ruling out any options.

Still, his latest comments did not suggest a change in tone, days after he said conditions were being set for “appropriate” action, without giving further details. Japan previously stepped into the currency market to arrest the yen’s sharp drop in late 2022.

Japan’s top government spokesman Yoshimasa Hayashi reiterated that currency moves should be stable, reflecting economic fundamentals.

“We are of the view that excessive fluctuations are not desirable. The government will be closely watching market developments and take all necessary steps,” said Hayashi, the chief Cabinet secretary.

The yen’s depreciation reflects a wide interest rate gap between Japan and the United States.

The Bank of Japan, which holds a two-day policy meeting from Thursday, raised interest rates for the first time in 17 years last month but the central bank is not expected to rapidly push rates higher and it has underscored the need to continue accommodative financial conditions.

The U.S. Federal Reserve, meanwhile, is now expected to cut interest rates later than initially thought, boosting the dollar further.

A weak yen inflates import costs, which contributes to higher inflation in Japan.

Related coverage:

Yen drops to 155 range, new 34-year low against U.S. dollar

BOJ to check effects of rate hike amid weak yen at policy meeting

Nikkei stock index surges over 2% on tech gains

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Finance

Letter: Educate leaders, too, on finance and humanities | Honolulu Star-Advertiser

Published

2 hours ago

January 31, 2026

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Finance

SB Financial Group Q4 Earnings Call Highlights

Published

14 hours ago

January 30, 2026

Press Room

SB Financial Group Q4 Earnings Call Highlights

SB Financial Group (NASDAQ:SBFG) management said fourth quarter and full-year 2025 results reflected continued execution across the franchise, with CEO Mark Klein calling it “one of the strongest earnings quarters and year in our history” despite ongoing pressure on mortgage activity across the indu

Finance

MUFG Seeks Stake In Indian Finance Company

Published

1 day ago

January 30, 2026

Press Room

MUFG Seeks Stake In Indian Finance Company

Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank by assets and market cap, is close to buying a 20% minority stake in India’s Shriram Finance Limited (SFL), for an investment of $4.4 billion.

SFL is one of the largest non-banking financial companies (NBFC), with assets under management totalling approximately $31 billion.

The negotiations are ongoing, and the agreement is not yet confirmed. The price and stake size could change, the agreement may be delayed, or even fall apart in the coming days.

Shriram’s shares rose nearly 50% this year on India’s National Stock Exchange and the Bombay Stock Exchange, giving a market value of around $18 billion, marking its fifth straight year of positive returns.

The reasons for the rally were: SFL’s strong fundamentals; the Reserve Bank of India’s easing for NBFCs; India’s rising Gross Domestic Product, which is increasing demand for SFL’s core lending segments; SFL’s final 150% dividend payout; and the proposed agreement with MUFG.

MUFG is not the first bank to propose a stake in an Indian bank. Sumitomo Mitsui Financial Group (SMFG), Japan’s second-largest bank, acquired a 20% stake in Yes Bank for $1.6 billion in May 2025, via secondary purchases from the State Bank of India and other banks. SMFG later became the single largest shareholder, acquiring a 24.2% stake in Yes Bank. It has already deployed almost $5 billion and is seeking to expand lending operations and increase employee strength.

Yet another Japanese financial group, Mizuho Securities, a unit of Mizuho Financial Group, is set to acquire a majority stake in Indian investment bank Avendus from KKR for up to $523 million in December 2025. This move will make Avendus a consolidated subsidiary of the Japanese financial group.

Some of the factors that attracted Japanese investors were India’s economic growth projected to grow at 6.5% in 2026, outpacing Japan’s stagnant domestic market, a 1.4 billion consumer base, low banking penetration, Reserve Bank of India’s robust regulatory reforms, eased foreign investment norms, and strong Japan-India collaboration in infrastructure projects like the Mumbai-Ahmedabad bullet train.

Since announcing its deal with Shriram, MUFG has reportedly seen increased interest from automakers looking to boost sales through preferential financing. Should the acquisition close, MUFG plans to have staff in Tokyo and Singapore to develop and execute these deals.