Japan's Yen Faces Pressure Amid Inflation Concerns, Says ADB President

On April 19, Masato Kanda, President of the Asian Development Bank, expressed concerns that the Japanese yen might face further pressure if the market perceives the Bank of Japan's actions against inflation risks as too slow. According to Jin10, Kanda, who previously served as Japan's top foreign exchange diplomat, stated on Friday evening that investors tend to buy dollars during global tensions partly because the U.S. is an oil exporter. However, even if these positions are unwound, the yen is unlikely to rise significantly against the dollar. Kanda highlighted that the primary reason for this is the interest rate differential. With the market closely monitoring potential actions by the U.S. Federal Reserve, many believe that if the Bank of Japan lags in addressing inflation risks, the yen will be left behind. During the International Monetary Fund and World Bank Group meetings in Washington this week, Kanda also noted that concerns over Japan's fiscal sustainability could lead investors to sell the yen.