USD/JPY above 101.60 after Kuroda’s Comment

The yen weakened against most of its 16 major peers after Bank of Japan Governor Haruhiko Kuroda said there’s momentum for carry trade.

The currency ended a three-day gain versus the dollar while local stocks rose after Takatoshi Ito, who headed a panel that advised Japan’s government on overhauling public pension funds, said the world’s biggest pool of retirement savings should allocate less to domestic sovereign debt. The yen reached a one-month high yesterday as Russia took control of Ukraine’s Crimea region, spurring demand for safer assets. Australia’s dollar weakened after its central bank reintroduced language referring to its strength relative to historical levels.

“It certainly helps push up dollar-yen,” Jonathan Cavenagh, a Singapore-based strategist at Westpac Banking Corp., said of Kuroda’s comment on carry trade. “Verbal intervention is too strong a word, but I don’t think the BOJ is all that comfortable with the very aggressive move lower in dollar-yen.”


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