Japanese Yen at Fresh Lows as Kuroda Reiterates Commitment to Stimulus

The Japanese yen fell today, touching fresh lows versus the US dollar and the euro, as Bank of Japan Governor Haruhiko Kuroda reiterated the pledge to keep monetary policy extremely accommodative.

Kuroda reiterated today commitment to keep policy ultra-loose until inflation reaches the central bank’s target of 2%. Analysts said that the divergence between the BoJ dovish stance and more hawkish stance of other nations’ central banks may attract carry traders to the yen. The increasing gap between interest rates in Japan and overseas make it more profitable to borrow in Japan and invest in other countries.

USD/JPY rose from 113.88 to 114.15 as of 12:13 GMT today, and its daily high of 114.29 was the highest since May 15. EUR/JPY gained from 129.73 to 129.95, touching 130.39 intraday — the highest level since February 2016.

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