Japanese Media: Oil Price Surge Combined with Yen Depreciation Puts Takagi Cabinet Under Double Pressure

[Global Network Report] According to Japanese television, on March 13, the yen depreciated sharply, with the USD/JPY approaching the 1:160 level. Bloomberg reports that Prime Minister Sanae Yoshioka’s cabinet is currently under dual pressure from soaring oil prices and yen depreciation, and Japanese citizens may face higher prices. The report states that the current situation is undoubtedly a worsening for the Yoshioka cabinet and highlights its lack of effective response measures.

Photo of Japanese Prime Minister Sanae Yoshioka

According to reports, in response to the yen’s depreciation trend on the 13th, Japanese Finance Minister Shigeki Kato stated, “Due to the surge in crude oil prices caused by special circumstances, the yen’s depreciation will impact the lives of Japanese citizens. Therefore, the Japanese government will ensure it can take foolproof measures under any circumstances.”

Japanese television reports that after Kato’s remarks, the yen temporarily appreciated but failed to reverse the depreciation trend. Market traders told the media, “The selling of the yen will not change.”

Bloomberg states that Japan is highly dependent on imports for energy, and market analysts believe that rising oil prices due to tense Middle East tensions will harm the Japanese economy, accelerating the yen’s depreciation.

Bloomberg also reports that Prime Minister Sanae Yoshioka’s cabinet is under dual pressure from soaring oil prices and yen depreciation, but it is difficult to find countermeasures. The best way to quickly stabilize oil prices is to reach a ceasefire; however, if Japan publicly calls for a ceasefire, it could provoke the United States.