Core Viewpoint - Japan's Finance Minister, Kato Katsunobu, expressed concerns about exchange rate fluctuations driven by speculators, but stated that he would not comment on the level of the exchange rate [1] Group 1 - The Finance Minister's stance indicates a cautious approach towards currency volatility, highlighting the potential impact of speculative trading on the exchange rate [1]

Core Viewpoint - The Japanese Ministry of Finance officials emphasize the need to monitor exchange rate trends [1] Group 1 - The Japanese government is focusing on the importance of tracking currency fluctuations [1]

Group 1 - The core viewpoint of the articles highlights the significance of U.S. Treasury Secretary Yellen's visit to Japan, coinciding with the upcoming Japanese Senate elections, which may influence U.S.-Japan trade negotiations, particularly regarding the proposed 25% "reciprocal tariffs" by the U.S. [1][2] - Nomura Securities reports that the Japanese government is coordinating a meeting between Yellen and Japan's Minister of Economic Revitalization, Akizuki Ryozo, to discuss the recent tariff proposals [1] - The report indicates that while a breakthrough in trade negotiations is unlikely in the immediate future, even a delay in the implementation of tariffs could limit the upward movement of the USD/JPY exchange rate [1] Group 2 - The articles note that U.S. Commerce Secretary Raimondo's visit to Japan may also facilitate discussions on tariffs for specific industries, including the automotive sector [1] - There is a historical context suggesting that any potential meeting between Yellen and Japan's Finance Minister, Kato Katsunobu, could significantly impact exchange rate trends, as previous discussions hinted at U.S. efforts to curb the rise of the USD/JPY [2] - Kato has indicated that he does not plan to meet with Yellen next week, as he is likely to attend the G20 finance ministers and central bank governors meeting in South Africa, which may lead the market to anticipate discussions on exchange rates if he cancels his trip [1][2]

Core Viewpoint - The Governor of the Bank of England, Andrew Bailey, stated that the strength of the British pound is not based on interest rate speculation [1] Group 1 - The Bank of England's stance on currency fluctuations emphasizes that exchange rate movements are influenced by factors beyond just interest rate expectations [1]

Group 1 - The Taiwanese dollar (TWD) experienced a significant appreciation, with the USD/TWD exchange rate dropping 7-8% over two consecutive days in early May, marking a historical volatility record that affected overall Asian currency fluctuations [1] - The Central Bank of Taiwan stated that the appreciation was not due to pressure from the US, but rather driven by exporters concentrating their foreign exchange settlements [1] - Taiwanese life insurance companies are unlikely to sell off their US dollar assets in the short term, despite the pressure from TWD appreciation and rising hedging costs, as US Treasury bonds remain a scarce long-duration asset [1][5] Group 2 - The next potential focus for currency movements in Asia includes the TWD and Malaysian ringgit (MYR), which are expected to benefit from high dollar deposit ratios and strong export settlement potential [2] - The South Korean won (KRW) is anticipated to have room for appreciation due to its high correlation with USD/CNY amid a downward trend in both currencies [2] - The Singapore dollar (SGD) is expected to perform solidly in the long term, supported by diversified asset allocation by the central bank and its AAA credit rating [2] Group 3 - The Chinese yuan (CNY) is projected to remain stable with a slight strengthening trend, as policymakers prefer a stable exchange rate path despite tariff pressures and capital outflow risks [2] - The Hong Kong dollar (HKD) is expected to maintain a strong position within its linked exchange rate system, bolstered by robust southbound capital inflows and significant liquidity injections by the Monetary Authority [2] - The Indian rupee (INR) faces pressure from geopolitical tensions and potential foreign exchange reserve accumulation by the Reserve Bank of India, making it difficult to outperform other high-yield currencies in the short term [2] Group 4 - The Indonesian rupiah (IDR) is considered undervalued, with expectations for a rebound due to manageable fiscal deficit risks and lower oil prices reducing subsidy expenditures [2]

Core Viewpoint - The Central Bank of Turkey indicates that short-term exchange rate trends and food prices are exerting upward pressure on inflation [1] Group 1 - The Central Bank of Turkey's governor highlights the significant impact of exchange rate fluctuations on inflation [1] - Food prices are identified as a critical factor contributing to inflationary pressures in the short term [1]