The Japanese yen dropped against its major rivals today despite optimistic comments from Bank of Japan Governor Haruhiko Kuroda. The likely reason for that was the improving market sentiment.
Kuroda showed optimism about inflation in today’s speech, saying:
With the output gap improving and medium- to long-term inflation expectations seen heightening, we expect inflation to accelerate as a trend and head toward 2 percent.
He also said, though, that extremely loose monetary policy should be maintained “until needed to stably and sustainably achieve” inflation target.
Meanwhile, risk aversion on markets was subsiding as conflict between the United States and Syria (as well as Russia) seems to be deescalating.
USD/JPY rose from 106.78 to 107.36 as of 14:05 GMT today. GBP/JPY climbed from 151.37 to 152.43, trading near the highest level since February 9.
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