Investing.com - The U.S. dollar is trading slightly lower against the Japanese yen today on speculation that one of Prime Minister Shinzo Abe’s preferred choices to become a Bank of Japan deputy governor may not be approved by Japan’s opposition party.
In Asian trading Wednesday, USD/JPY fell 0.11% to 91.88. The pair was likely to find support at 90.32, the low of January 29 and resistance at 92.74, the session high.
On Tuesday, it was reported that the Democratic Party of Japan, the main opposition party to Prime Minister Shinzo Abe’s Liberal Democratic Party, may not approve Kikuo Iwata for one of the two open deputy governor slots at the Bank of Japan.
While Asian Development Bank chief Haruhiko Kuroda is widely expected to receive approval, some concerns have been expressed about Iwata. Abe’s party controls Japan’s lower house of parliament, but not the upper house.
Market participants view Iwata as towing the party line with Abe for unlimited monetary easing and higher inflation.
In fact, Iwata has been vocal in his support of higher inflation, saying that if Abe’s target of 2% inflation is not met, Japan should change a long-standing that guarantees the central bank’s independence, something Abe himself previously threatened.
Japan’s Your Party, which is far smaller than Abe’s LDP and the opposition Democratic Party, has openly supported Iwata. The Your Party does hold 12 seats in parliament’s upper chamber.
Some observers of Japanese politics believe Abe’s soaring popularity, helped in large part by the falling yen, make it difficult and perhaps politically perilous for anyone to oppose his BoJ nominations.
Elsewhere, EUR/JPY fell 0.05% to 120.05 while AUD/JPY dropped 0.15% to 93.94. NZD/JPY fell 0.12% to 75.75.
In Asian trading Wednesday, USD/JPY fell 0.11% to 91.88. The pair was likely to find support at 90.32, the low of January 29 and resistance at 92.74, the session high.
On Tuesday, it was reported that the Democratic Party of Japan, the main opposition party to Prime Minister Shinzo Abe’s Liberal Democratic Party, may not approve Kikuo Iwata for one of the two open deputy governor slots at the Bank of Japan.
While Asian Development Bank chief Haruhiko Kuroda is widely expected to receive approval, some concerns have been expressed about Iwata. Abe’s party controls Japan’s lower house of parliament, but not the upper house.
Market participants view Iwata as towing the party line with Abe for unlimited monetary easing and higher inflation.
In fact, Iwata has been vocal in his support of higher inflation, saying that if Abe’s target of 2% inflation is not met, Japan should change a long-standing that guarantees the central bank’s independence, something Abe himself previously threatened.
Japan’s Your Party, which is far smaller than Abe’s LDP and the opposition Democratic Party, has openly supported Iwata. The Your Party does hold 12 seats in parliament’s upper chamber.
Some observers of Japanese politics believe Abe’s soaring popularity, helped in large part by the falling yen, make it difficult and perhaps politically perilous for anyone to oppose his BoJ nominations.
Elsewhere, EUR/JPY fell 0.05% to 120.05 while AUD/JPY dropped 0.15% to 93.94. NZD/JPY fell 0.12% to 75.75.