BOJ’ Kuroda: Important for forex to move stably reflecting economic fundamentals

Anil Panchal FXStreet

Bank of Japan (BOJ) Governor Haruhiko Kuroda crosses wires, via Reuters, during early Monday. The BOJ Boss promotes softer Japanese yen (JPY) while ruling out negative implications of the same on the economy.

Key quotes

Don't see current weak yen as particularly negative for Japan's economy.

Important for forex to move stably reflecting economic fundamentals.

Yen fall pushes up raw material import costs, but boosts value of exports, profits of Japan firms' overseas subsidiaries.

Must look comprehensively at pros, cons of weak yen on japan's economy.

It's true prices of gasoline, some food goods rising but it's not leading to sharp rise in consumer inflation or severely hurting economy.

No decision made yet on fate of boj's pandemic-relief loan scheme after current march deadline.

Will decide on fate of pandemic-relief loan scheme by scrutinising pandemic developments, corporate funding situation.

Even if japan's consumer inflation reaches 1% next year, that won't lead to the boj winding down or abandoning easy monetary policy.

USD/JPY remains indecisive

Following the comments, USD/JPY struggles for a clear direction, recently easing to 113.85 ahead of Monday’s European session.

Read: BOJ’s Kuroda: Don't see China’s property sector woes to trigger huge global shock

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD recovers further from one-month low set on Friday, eyes mid-1.1800s on weaker USD

The EUR/USD pair is seen building on Friday's late recovery from the 1.1750-1.1740 region, or a nearly one-month trough, and gaining some follow-through positive traction at the start of a new week. The momentum lifts spot prices to the 1.1835 area during the Asian session and is sponsored by a broadly weaker US Dollar.

GBP/USD gathers strength above 1.3500 amid tariff confusion

The GBP/USD pair gains traction to around 1.3520 during the early Asian session on Monday. The US Dollar faces some selling pressure against the Cable as tariff uncertainty lingers. Traders will take more cues from the US Producer Price Index report for January, which will be published later on Friday.

Gold rallies above $5,150 as Trump’s tariffs boost haven demand

Gold price extends the rally above $5,150 in the Asian session on Monday. The precious metal extends the rally amid US President Donald Trump’s tariff threats and uncertainty, which boost safe-haven flows. US-Iran geopolitical risks also linger, supporting the Gold price upside.

Week ahead: Markets brace for heightened volatility as event risk dominates

Dollar strength dominates markets as risk appetite remains subdued. A Supreme Court ruling, geopolitics and Fed developments are in focus. Pivotal Nvidia earnings on Wednesday as investors question tech sector weakness. Yen and aussie diverge; both pound and euro could recoup their losses.

Liberation day take two, the tariff machine just changed gears

Let me caveat this from the outset. What we are watching is first-order mechanics, not the grand macro endgame. This is the market’s immediate reflex to a 15% Trump tariff levy dressed up as judicial drama. The Supreme Court blocked Trump tarrif hammer. The White House came back with a scalpel.

Ripple bulls defend key support amid waning retail demand and ETF inflows

XRP ticks up above $1.40 support, but waning retail demand suggests caution. XRP attracts $4 million in spot ETF inflows on Thursday, signaling renewed institutional investor interest.