The ruling Democratic Party of Japan elected another finance minister as its chief, all but guaranteeing that Yoshihoko Noda will become the next prime minister.
Noda has participated in multiple interventions against the strengthening yen, including last week’s $100 billion fund to help companies investing abroad.
Despite his record, however, the yen remained strong following the announcement. FX traders may have noted that none of Yoda past interventions were successful in weakening the currency.
Yoda favours raising taxes to deal with Japan’s debt and stagnant economy, according to VOA.
Meanwhile the government signaled a conservative monetary policy as Economic and Fiscal Policy Minister Kaoru Yosano said today the Bank of Japan should not underwrite Japanese government bonds: “We have no new medicine. We have to take the same remedies (as taken in the past) to cope with the same illness.”