The Japanese yen weakened today against the majority of its most-trade peers (with the exception of the euro) after Bank of Japan Governor Haruhiko Kuroda reiterated yet again that the central bank is ready to implement additional monetary easing if necessary.
Kuroda continued to talk about his commitment to ease monetary policy further if BoJ members think that the economic situation warrants such move:
We are prepared to ease policy again, including lowering short-term rates, if we judge that the merits outweigh the costs.
Meanwhile, BoJ board member Yutaka Harada suggested that the central bank did not reach its limit for easing but he does not think that additional accommodation is necessary at present time:
Since the employment situation has continued to improve, no further easing of monetary policy may be necessary.
As for economic data, core machinery orders dropped 2.2% in August from the previous month, though the drop was two times smaller than experts’ forecasts.
USD/JPY ticked up from 103.49 to 103.75 as of 11:51 GMT today. CHF/JPY rose from 104.62 to 104.87.
If you have any questions, comments or opinions regarding the Japanese Yen,
feel free to post them using the commentary form below.