Bank of Japan Governor Kuroda comments earlier sent USD/JPY lower

Catching up on remarks from Kuroda earlier in the session. His remarks on ‘excessively weak yen’ are intended to lend some support to the currency – Japanese authorities do not want yen falling too rapidly.  desirable for FX to move stably reflecting econ fundamentals sharp yen moves could have negative impacts on economy has not changed view that weak yen is positive for economy as a whole weak yen’s impact is uneven depending on sectors, corporate sizes recent yen weakening has been quite sharp recent sharp yen weakening could have impact on corporate profit plans excessive weak yen or yen’s rapid weakening can have more negative impact, but weak yen is basically positive overall And, more: Japan’s rising prices due to energy prices appropriate to continue monetary easing as Japan’s energy mostly relies on imports, global commodity rally has only negative impact unlike a weak yen too early to debate exit from stimulus policy You can see the impact of Kuroda’s remarks in the chart, below. As I said above the intent is to slow the fall of yen. At this stage the intent is not to reverse it. Continue Reading 

By Forexlive

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