USD/JPY Back Above 92 Before Abe Submits BOJ Nominees

The yen was lower after two days of declines versus the dollar before Prime Minister Shinzo Abe submits his nomination for the next Bank of Japan (8301) governor, amid speculation a program of monetary easing will follow.

The U.S. was higher against most major peers before Commerce Department data forecast to show a higher estimate for economic growth in the fourth quarter. The Australian dollar weakened after documents released by a Freedom of Information request showed the nation’s central bank views its currency as overvalued. Abe is expected to nominate Asian Development Bank President Haruhiko Kuroda as the new BOJ chief and academic Kikuo Iwata as a deputy in parliament today.

“Prime Minister Abe has been very vocal on what he wants the BOJ to do, and Kuroda will push for that easing to support growth,” said Janu Chan, a Sydney-based economist at St. George Bank Ltd. “That’s what’s behind the yen weakness of recent months. All those expectations are embedded in the yen now.”


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