Prime Minister Abe repeated his pledge for action on stimulus measures Monday, ordering measures to bolster domestic demand, which include plans to accelerate infrastructure like high-speed trains, reports Susanne Barton for Bloomberg.
“If they ease further, you could see the yen weaken,” Andres Jaime, a currency strategist at Barclays Plc, told Bloomberg. “It will be temporary. We wouldn’t expect it to be sustained.”
Abe will hold a cabinet meeting to consider more than 10 trillion yen, or $98 billion, in fiscal measures.
“Should the government go ahead with economic measures, the size of stimulus could be large,” Yuji Saito, Tokyo-based head of the foreign-exchange department at Credit Agricole SA, told Bloomberg. “These expectations are spurring a surge in stocks and selling of the yen.”
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