The Japanese yen gained against its major rivals during the Monday’s trading session following the speech from Haruhiko Kuroda, Bank of Japan Governor.
Kuroda signaled that BoJ is ready to continue monetary easing in order to achieve its inflation target:
I would add that the “benefits” of achieving the price stability target of 2 percent at the earliest possible time are enormous as Japan’s economy is finally overcoming deflation that lasted for a prolonged period of time. The Bank will continue to make its utmost efforts to achieve this commitment.
Additionally, he dismissed the notion that the central bank is reaching the limit of its ability to stimulate the economy:
It is often argued that there is a “limit” to monetary easing, but I do not share such a view.
Yet it looks like markets wanted to hear something more substantial, therefore they have sent the yen higher after being disappointed by the lack of specifics in Kuroda’s speech.
USD/JPY fell from 104.07 to 103.21 as of 11:04 GMT today. EUR/JPY dropped from 116.06 to 115.24.
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