The Japanese yen was rising during the Asian trading session today, though the currency retreated closer to the opening level as of now. The rally was triggered by comments from members of the central bank about potential timing for dropping monetary stimulus.
Bank of Japan board member Ryuzo Miyao said today that the bank may end its extremely accommodative monetary policy in the second half of 2015. Such outlook counts on inflation staying at the 2 percent level. Miyao said that the recent expansion of stimulus should not make it harder for policy makers to exit monetary accommodation:
As a result of this measure, I think we can comfortably achieve a balanced 2% inflation that comes with improved corporate profits, employment and wages.
He added that growth of consumer prices should accelerate as the impact of falling prices for crude oil will fade:
If that happens, we will be able to have a prospect for anchoring 2% inflation with corresponding certainty.
The yen rose after these comments. Previously, the currency weakened on rumors that the government is going to postpone the planned increase of sales tax.
USD/JPY traded at 115.82 as of 4:40 GMT today after falling from 115.79 to 115.24 earlier. EUR/JPY ticked down from 144.40 to 144.32, while GBP/JPY traded close to the opening level of 184.27.
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