BOJ losing headroom on the yen - Nikkei
|The Nikkei carries an article this Thursday, highlighting the yen strength may make it difficult for the BOJ to achieve its 2% price target.
Key Quotes:
“The yen has picked up strength to a level not seen in roughly four months, seemingly putting the Bank of Japan's 2% inflation target in jeopardy. Although the central bank is not yet in panic mode, the situation leaves little room for optimism.”
“This week, the Japanese currency advanced into the 110 yen range against the dollar.“
“Right now, the BOJ does not appear to be in a state of alarm. Officials have made their peace with the fact that key indicators are at the mercy of international trends, and they are prepared to deal with those tendencies soberly by employing rate controls.”
“That said, there is no denying that the recent surge of the yen is nothing to celebrate. Japan is approaching the peak of spring labor talks, and the hope is that wages will rise significantly to put upward pressure on consumption and consumer prices. “
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