The yen touched a four-month low as Bank of Japan Governor Haruhiko Kuroda said he’ll do his utmost to restrict a rise in long-term yields.
The yen is set for its longest stretch of weekly losses versus the dollar since February as Japanese yields fell to the lowest in two months relative to the U.S. The euro reached a four-year high versus the yen before European Central Bank officials including President Mario Draghi speak today. Reserve Bank of Australia Governor Glenn Stevens said yesterday policy makers were “open minded” about intervening to weaken the Aussie, pushing it to a fifth-straight week of declines.
“Certainly, the BOJ’s policy stance should be working towards a weaker yen,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. “Higher yields in the States will surely draw more outflows from Japan, where the BOJ is maintaining QE at full pace, and is giving every indication they will continue to do so,” he said, referring to a stimulus program know as quantitative easing.