BOJ Kuroda comments boosts yen

Bank Of Japan Governor Haruhiko Kuroda Briefing After Policy MeetingThe yen strengthened against major currencies on Wednesday, following hawkish comments from Bank of Japan Governor Haruhiko Kuroda regarding the yen’s exchange rate.

The Japanese has added more than 1 percent versus the U.S. dollar after Kuroda said the currency is already very weak and further depreciations is unlikely

“Given the real effective exchange rate has come this far, a further fall seems unlikely,” said Kuroda.

Similarly, Economy Minister Akira Amari said on Tuesday the appreciation of the yen is not good for the economy and he will closely monitor developments in the market.

The government will focus on all the potential effects of weak yen on small business and households, Japanese Prime Minister Shinzo Abe said on Monday.

It seems that Japanese officials are satisfied with the recent fall in the yen, but they have no problem seeing the yen appreciating in the coming period.

Against the dollar, the yen resumed its advance for a third straight session even after President Barack Obama denied expressing his worries about the dollar’s strength.

The USDJPY is currently trading around 122.95 after hitting a bottom of 122.44, noting that it plunged from a high of 125.84 recorded on June 5.

Eyes will focus tomorrow on U.S. retail sales data, which may a 1.1 percent advance in May from the prior flat reading.

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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