The Japanese yen did not demonstrate a clear trend today, falling versus the US dollar and the Swiss franc, gaining on the Great Britain pound, and staying flat versus the euro. Monetary policy minutes of Japan’s central bank reiterated the possibility of additional monetary easing. Domestic macroeconomic data was mixed.
The Bank of Japan released minutes of its July 29–30 monetary policy meeting. The notes reaffirmed that the central bank is prepared to increase stimulus in case of necessity:
Many members expressed the recognition that (1) it was appropriate that the Bank would not hesitate to take additional easing measures if there was a greater possibility that the momentum toward achieving the price stability target would be lost, particularly in a situation where downside risks to economic activity and prices, mainly regarding overseas economies, were significant, and (2) it was desirable that the Bank communicate to the public in such a way that clarified this policy stance. A few of these members pointed out that it was necessary to examine various possible easing measures in advance, including their pros and cons.
The BoJ also released a couple of inflation reports. The Services Producer Price Index rose 0.6% in August, the same as in July and exceeding the consensus forecast of a 0.5% increase. The BoJ core Consumer Price Index rose 0.4% in August, while the economists were expecting the same 0.6% rate of growth as in July.
USD/JPY rose from 107.05 to 107.33 as of 11:09 GMT today. EUR/JPY was flat at 117.96. GBP/JPY slid from 133.73 to 133.24. CHF/JPY gained from 108.59 to 108.84.
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