USD/JPY: The US Dollar lower as US Treasury yields fall
|- US Dollar slips for the third straight day and Treasury yields drop.
- Market talks of Kuroda likely being reappointed the BOJ governor.
The US Dollar fell to the lowest level since September 2017 against the Japanese Yen after the US 10-year Treasury yields fell from its 4-year high this Monday. The USD/JPY is trading down 0.85% at around ¥107.70 against the Japanese Yen in London afternoon after it fell as low as ¥107.42 earlier in Europe.
The US Treasury yields development and the global equities are trying to stabilize after the sell-off last week. Equity indices in Japan closed down on Tuesday after being closed on Monday for vacations, unable to materialize the positive gains of almost 1.3% earlier on the day.
The USD/JPY failed to continue past Tuesday’s high after the verbal intervention from Japan’s Vice Finance Minister for International affairs Asakawa, who said that he will closely monitor whether the recent JPY rises are speculative.
BOJ Governor speculation
The market has been speculating about the chances of the current BOJ Governor Haruhiko Kuroda winning the nomination for the second term after Prime Minister Shinzo Abe said that he did not yet decide on next Governor but expects BoJ to maintain current easing course.
Kuroda was at the helm of BOJ when the Bank launched its massive QQE back in April 2014 and therefore makes a perfect case of continuity.
Earlier on Tuesday, the Kuroda reiterated that the BOJ must maintain powerful monetary easing for the economy, including the current pace of ETF buying as it is necessary step to achieve price target.
On cryptocurrencies, Kuroda said that they are unlikely to threaten sovereign currencies as means for settlement.
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