BoJ’s Ueda: Desirable for FX to move stably reflecting fundamentals

Dhwani Mehta FXStreet

Bank of Japan Governor Kazuo Ueda said during his scheduled appearance on Tuesday, it is “desirable for FX to move stably reflecting fundamentals.”

Additional quotes

Global markets remain somewhat unstable.

Must watch market developments with strong sense of urgency for time being.

In medium- to long-term perspective, BoJ hopes to help household, corporate activity by achieving price stability.

Unwinding of speculative Yen positions has likely run its course.

Want to scrutinize each month's service price data in gauging developments in underlying inflation.

October is particularly a month when service prices are revised in Japan, so want to look closely at data for that month.

Service price developments are among important factors, but not the only factor, we will look at in gauging underlying price trend.

Our estimate on Japan's natural rate of interest, which was scrutinized as part of our comprehensive review, was among factors we took into account as reference in setting monetary policy.

Want to communicate closely with government regardless of who becomes next Prime Minister.

No comment on whether the BoJ willing to revise joint statement with govt, under new Prime Minister.

No comment on short-term FX fluctuations.

Market reaction

USD/JPY clings to the latest uptick above 144.00 following these comments, adding 0.40% so far.

Japanese Yen PRICE Today

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

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.05%	0.07%	0.39%	-0.11%	0.23%	0.08%	0.11%
EUR	-0.05%		0.03%	0.35%	-0.20%	0.18%	0.03%	0.06%
GBP	-0.07%	-0.03%		0.33%	-0.19%	0.17%	-0.00%	0.03%
JPY	-0.39%	-0.35%	-0.33%		-0.48%	-0.17%	-0.35%	-0.30%
CAD	0.11%	0.20%	0.19%	0.48%		0.34%	0.19%	0.22%
AUD	-0.23%	-0.18%	-0.17%	0.17%	-0.34%		-0.15%	-0.13%
NZD	-0.08%	-0.03%	0.00%	0.35%	-0.19%	0.15%		0.03%
CHF	-0.11%	-0.06%	-0.03%	0.30%	-0.22%	0.13%	-0.03%

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

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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