The yen held near a three-week high as Bank of Japan (8301) Governor Haruhiko Kuroda spoke on monetary policy before the nation’s parliament.
The yen rose against most of its major peers amid speculation investors are buying back the currency after it weakened 17 percent over the past six months amid prospects for more BOJ stimulus. The euro traded 0.2 percent from a four-month low as a Cyprus bailout plan to tax bank depositors cast doubt on the safety of financial assets in the region.
The yen’s gains “may be due to people seeing an opportunity to squeeze out some yen shorts,” said Derek Mumford, a director at Rochford Capital, a currency risk- management company in Sydney. Short positions are bets an asset will decline. “There’s no doubt the BOJ is going to ease. The question is the extent, and how it’s going to be transmitted into the market.”