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BoJ’s Masu: Want to scrutinize how prices move after recent spike in price of rice moderates

Bank of Japan’s (BoJ) new board member Kazuyuki Masu said on Tuesday, he would “want to scrutinize how prices move after recent spike in price of rice moderates.”

Additional quotes

Don't have any strong disagreement to the BoJ’s view underlying inflation is still short of 2%.

Automobiles are mainstay of Japan’s export to the US, so should not have any pre-set idea on impact on Japan’s economy until trade talks with the US resolved.

Recent economic conditions suggest we're not in a state where the BoJ can rush into raising interest rates and must move cautiously with close eye on various data.

Many Japanese firms likely saw profits rise from weak yen, though weak yen has negative impact on consumption through rise in import costs.

The BoJ must unload its huge ETF holdings at some point.

Given huge market impact on stock market, the BoJ must move very cautiously in unwinding ETF holdings.

I probably stand right in the middle, have no strong view, when asked whether he would brand himself as hawkish or dovish on monetary policy.

Market reaction

At the time of writing, USD/JPY is 0.70% down on the day at 143.02, with the Japanese Yen unperturbed by these above comments.

Japanese Yen PRICE Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the Euro.

USDEURGBPJPYCADAUDNZDCHF
USD0.07%-0.22%-0.70%-0.05%-0.09%-0.25%-0.32%
EUR-0.07%-0.28%-0.86%-0.11%-0.07%-0.32%-0.37%
GBP0.22%0.28%-0.45%0.20%0.21%-0.04%-0.08%
JPY0.70%0.86%0.45%0.71%0.61%0.44%0.40%
CAD0.05%0.11%-0.20%-0.71%-0.06%-0.24%-0.28%
AUD0.09%0.07%-0.21%-0.61%0.06%-0.25%-0.31%
NZD0.25%0.32%0.04%-0.44%0.24%0.25%-0.05%
CHF0.32%0.37%0.08%-0.40%0.28%0.31%0.05%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

Author

Dhwani Mehta

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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