Japanese Economy Minister Shigeyuki Goto said on Tuesday, “we are going to use budget reserves to pay for a stimulus package worth 2.2 trillion yen.”

Meanwhile, the country’s Prime Minister Fumio Kishida said, “we actively monitor developments on banks and the general stability of Japan's financial system.”

Additional takeaways

“Japan's financial system remains stable overall, closely wathing developments on banks.”

“Risk aversion seen in financial markets.”

“Japan's financial institutions have ample liquidity and capital.”

Market reaction

Goto’s comments helped the Japanese yen catch a fresh bid, drowning USD/JPY to daily lows of 130.57. The pair is currently trading at 130.77, still down 0.60% on the day.