The Japanese yen fell today after Prime Minister Shinzo Abe appointed Haruhiko Kuroda as the next Bank of Japan Governor. The currency bounced to the opening level as of now.
Market participants speculated that President of the Asian Development Bank Kuroda, who was considered to be more aggressive on interventions than other candidates, will be the next BoJ governor. Such speculations proved true as Abe indeed nominated him the next central bank’s head. This confirms that the Prime Minister is serious about pushing the currency down and boosting the Japanese economy.
As one could expect, the yen dropped on the news. Yet for some reason the currency bounced back and now trades near the opening rate.
USD/JPY was at 92.34 as of 5:15 GMT today after rising from 92.21 to 92.66. EUR/JPY traded at about 121.41, almost erasing the previous rise from 121.15 to 121.80. GBP/JPY climbed from 139.79 to 140.48, but retreated to 140.02 later.
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