USD/JPY Moves Towards 94 as BOJ’s Kuroda Gives No New Policy Hints

The yen gained against all its major peers as Bank of Japan (8301) Governor Haruhiko Kuroda reiterated policy easing options, damping expectations for novel measures to be unveiled as early as next week.

Kuroda speaks to upper house lawmakers today after telling Japan’s lower house earlier this week he aimed to achieve a 2 percent annual inflation goal in two years. The euro traded 0.2 percent from a four-month low versus the dollar as traders speculated future European bailouts could include the kind of bank deposit levies imposed on Cyprus.

“Kuroda’s been talking up more aggressive easing and stamping out deflation,” said Janu Chan, a Sydney-based economist at St. George Bank Ltd. “If the governor does what’s expected, we’ll probably see limited reaction in the currency. There’s probably more risk that the yen strengthens than weakens.”


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