BOJ Comments Spurs Action

Talk of further monetary stimulus from the Bank of Japan helped push the yen to a six-month low and lifted the Nikkei to a six-month high on Tuesday, and the move in Japanese assets may have further to run, analysts say.

Comments made by Bank of Japan (BOJ) governor Haruhiko Kuroda on Monday fueled speculation of further easing, after he told participants at a conference “we are ready to adjust monetary policy without hesitation if risks materialize.”

The dollar-yen hit a six-month high of 103.37 per dollar in Asia on Tuesday, while stocks powered to their highest level since 2007 to close at 15,749 on Tuesday. Better-than-expected U.S. economic data increased expectations of a near-term tapering of the Federal Reserve’s asset-purchase program also helping to boost the dollar-yen.

CNBC

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