As Haruhiko Kuroda, Governor of the Bank of Japan, asserted that the financial institution is attempting to limit bond market volatility the Yen advanced on several of its main currency rivals.
The Japanese Yen exchange rate was in the region of 100.8200 Yen to one US Dollar as of 09:50 am GMT
The Asian asset strengthened notably against the US Dollar as a report revealed that Japanese investors disposed of foreign bonds for a second consecutive week and domestic shares plummeted.
According to the latest data, 1.12 trillion Yen of foreign bonds was sold off by Japanese investors in the week to May 24th, following the sale of 800 billion Yen of debt in the previous week.
Meanwhile, during an address to Parliament Kuroda asserted that the current level of easing implemented by the central bank should prove effective in bringing deflation to an end.
He also commented that stability in yield developments would be beneficial, stating: ‘I will not ignore bond market volatility. I want to reduce volatility as much as possible to place strong pressure on long-term yields and push them lower.’
Akira Amari (the nation’s Economy Minister) stressed that the Japanese economy would be adversely affected by surging bond yields.
In response to Kuroda’s remarks, and the Yen’s consequent movement, currency strategist Kengo Suzuki stated: ‘Kuroda’s competence is highly regarded in the foreign exchange market. His failure to take hold of bond yields will lead to disappointment, sapping expectations of further Yen weakness.’
With a stream of Japanese economic data due for release tomorrow (including Japan’s national consumer price index), and BOJ Deputy Governor Nakaso scheduled to speak in Tokyo, additional Yen movement is likely to occur before the weekend.
Current Japanese Yen (JPY) Exchange Rates
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.8200 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 152.5400 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 130.6900 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 81.7141 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.3962 <
(Correct as of 09:50 GMT)
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