Japan’s Aso: No place in Japan for “modern monetary theory”

Speaking at a regular news conference, Japanese Finance Minister Taro Aso said that Japan must not make its public finances a target of experiment for lax financial management such as through "modern monetary theory", per Reuters.

Reuters said that the diplomat’s response was to a proposal by Sanae Takaichi, a contender in the ruling party's leadership race, for shelving a primary budget-balancing target until 2% inflation is met.

In separate news by Reuters, it was revealed that Japan's popular vaccination minister, Taro Kono, is set to announce his candidacy on Friday for the leader of the country's ruling political party and, by extension, its next prime minister.

USD/JPY refreshes intraday top

Following the news, the USD/JPY pair refreshes intraday top to 109.88, up 0.16% on a day. The risk barometer pair’s gains could also be linked to the Xi-Biden talks.

Read: USD/JPY Price Analysis: 100-DMA challenges corrective pullback from weekly low