BoJ: Economy in a severe situation due to impact of covid

Japan's economy picking up but risks from a resurgence in covid infections continue to warrant attention, the Bank of Japan's Summary of Opinions (April monetary policy meeting) has stated. 

More key statements

''Japan's economy likely to recover mainly on external demand but outlook highly uncertain.

Japan's economy may see sustained recovery once pandemic subsides due to emergence of pent-up demand.

Japan could see huge pent-up demand in services once pandemic subsides as households accumulate savings, deposits.

Risks to japan's economy remain skewed to downside due to uncertainty over pandemic fallout.

Global economic recovery remains uneven, also faces risks such as peak-out in growth, premature withdrawal of policy support.''

USD/JPY implications

USD/JPY, meanwhile, is unchanged on the Summary of Opinions as traders look to the US data on the main. 

The greenback is nursing losses near 2-1/2 month lows on Monday as a disappointing Nonfarm Payrolls report prompted investors to unwind their growing long positions in the greenback.

USD/JPY trades at 108.82 in a tight 108.73/85 range.