Yen Slides on Comments from Taro Aso

The latest comments from Japanese Finance Minister Taro Aso are leading to losses for the Japanese yen. Aso indicated that Japanese policymakers remain poised to intervene in the markets in their attempts to keep the yen weak. Additionally, optimism that the United States will continue with its stimulus program is prompting risk appetite.

Japanese stocks got a boost earlier, and the yen is dropping against its major counterparts now, thanks to the latest remarks from Taro Aso. The Japanese Finance Minister said that the option to intervene in the currency markets must remain open. These comments are being taken as a tacit warning that policymakers in Japan will do what it takes to keep the yen weak. There have been instances of intervention in the past, so Forex traders know that Aso is serious.
Another wrinkle keeping the yen lower right now is the return of risk appetite — at least to some degree. The Fed’s Janet Yellen made a speech that seems to indicate that US stimulus will remain at least through the end of the year. That is prompting interest in higher-yielding currencies.
At 14:47 GMT USD/JPY is up to 100.0020 from the open at 99.3945. EUR/JPY is up to 134.5160. GBP/JPY is up to 160.7760 from the open at 159.3150.

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