Yen Falls After BoJ Kuroda Hints At Further Monetary Policy Easing
19 February 2019 - 1:44PM
RTTF2
The Japanese yen declined against its major counterparts in the
Asian session on Tuesday, after the Bank of Japan Governor Haruhiko
Kuroda remarked that the central bank is willing to ease further,
if the Japanese currency's strength curb economic growth.
Speaking to Parliament, Kuroda suggested the possibility of
further policy easing, if needed, in order to withstand the
pressure from a sharp yen rise.
"Currency moves could have an impact on the economy and prices,
so it's crucial we take into account these factors when guiding
monetary policy," Kuroda told.
Should currency moves have "an impact on the economy and prices,
and if consider it necessary to achieve our price target, we'll
consider easing policy," he added.
Asian shares were mostly higher as investors pin hopes for
progress in U.S.-China trade talks and bet on policy stimulus from
central banks.
The negotiations will resume in Washington later in the day, as
the world's two largest economies race to reach a deal by the March
1 deadline.
The yen declined to a 5-day low of 110.70 against the greenback,
reversing from a high of 110.45 hit at 8:30 pm ET. The yen is seen
finding support around the 112.00 level.
The yen reversed from its early highs of 124.77 against the euro
and 109.88 against the franc, retreating to 125.04 and 110.09,
respectively. On the downside, 128.00 and 112.00 are possibly seen
as the next support levels for the yen against the euro and the
franc, respectively.
The yen eased slightly to 83.50 against the loonie, 78.75
against the aussie and 75.65 against the kiwi, from its early 4-day
highs of 83.29, 78.52 and 75.41, respectively. The yen is likely to
challenge support around 84.5 against the loonie, 79.5 versus the
aussie and 77.00 against the kiwi.
The yen pulled back slightly to 142.79 against the pound, off an
early high of 142.48. If the yen falls further, 146.00 is likely
seen as its next support level.
Looking ahead, Eurozone current account and construction output
for December, U.K. ILO jobless rate for the three months ended
December and German ZEW economic sentiment index for February are
set for release in the European session.
At 10:00 am ET, U.S. NAHB housing market index for February is
scheduled for release.
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