Bank of Japan (BOJ) Governor Haruhiko Kuroda is back on the wires, via Reuters, making some comments on the exchange rate stability.
Key quotes
Important for fx to move stably reflecting economic fundamentals.
FX rates not moving sharply, don't need to consider fx moves as big factor behind recent price rises.
Real wages may briefly come under pressure from rising inflation but wage earners' real income will continue to rise and underpin consumption.
Recent Japan inflation driven mostly by global commodity prices, rather than weak yen.
BOJ must continue easy policy as 2% inflation remains distant.
Unlike in past, there is not just downside but upside risks to Japan’s price outlook.
Hard to foresee Japan’s inflation approaching 2% and have big impact on inflation expectations.
Market reaction
USD/JPY is attempting a bounce towards 114.00 amid rebounding Treasury yields and firmer US dollar.
The spot was last seen trading at 113.86, down 0.04% on the day.
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