USD/JPY Moves towards 94 on BOJ Governor Report

The yen fell against most major counterparts after Japan posted a record trade deficit and investors speculated the nation’s next central bank governor will advocate expanded monetary easing.

Former Bank of Japan Deputy Governor Toshiro Muto may be taken off a list of candidates for governor of the central bank, the Yomiuri newspaper reported. The euro rose for a third day versus the pound before data that may show consumer confidence in the currency bloc improved. The dollar slid before the Federal Reserve releases minutes of its January meeting.

“Muto as the next BOJ governor is seen as a yen-buying catalyst,” said Yuji Saito, the director of foreign-exchange at Credit Agricole SA in Tokyo. “He was seen as most neutral” in terms of monetary policy.


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