- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.