Investing.com - The Japanese yen rebounded against the U.S. dollar and several other major currencies during Tuesday’s Asian session following comments from Japanese Finance Minister Taro Aso.
In Asian trading Tuesday, USD/JPY lost 0.23% to 93.75. The pair was likely to find support at 92.23, Friday’s low, and resistance at 94.41, last Tuesday’s high.
Earlier today, Aso said his country is not mulling purchases of foreign bonds as means of stimulating the Japanese economy. On a related note, minutes from the Bank of Japan’s meeting released earlier today indicated the central bank is considering purchasing longer-term Japanese government bonds as part of its asset-buying program to stem deflation.
Last month, BoJ committed to Federal Reserve-style asset-buying, but disappointed markets when it said it would not initiate that program until 2014.
Abe mentioned foreign bond-buying as a possible option for BoJ yesterday, but Economy Minister Akira Amari clarified by those remarks by hinting that Abe was implying that all central banks have a variety of tools at their disposal.
Aso also said Japan is not considering changing a law that guarantees BoJ’s independence. Previously, newly elected Prime Minister Shinzo Abe has threatened to revoke the law if the central bank did not raise its inflation target to match his own of 2% and engage in unlimited monetary easing.
BoJ has since raised its inflation target to 2%. Media reports out on Monday speculated that Abe could name a new BoJ governor as early as this week and it is widely expected that the new central bank chief will be one that shares Abe’s view of unlimited easing being necessary to fight deflation and stimulate the fragile Japanese economy.
Elsewhere, EUR/JPY fell 0.30% to 125.09 while AUD/JPY lost 0.13% to 96.73. NZD/JPY tumbled 0.52% to 79.03.
In Asian trading Tuesday, USD/JPY lost 0.23% to 93.75. The pair was likely to find support at 92.23, Friday’s low, and resistance at 94.41, last Tuesday’s high.
Earlier today, Aso said his country is not mulling purchases of foreign bonds as means of stimulating the Japanese economy. On a related note, minutes from the Bank of Japan’s meeting released earlier today indicated the central bank is considering purchasing longer-term Japanese government bonds as part of its asset-buying program to stem deflation.
Last month, BoJ committed to Federal Reserve-style asset-buying, but disappointed markets when it said it would not initiate that program until 2014.
Abe mentioned foreign bond-buying as a possible option for BoJ yesterday, but Economy Minister Akira Amari clarified by those remarks by hinting that Abe was implying that all central banks have a variety of tools at their disposal.
Aso also said Japan is not considering changing a law that guarantees BoJ’s independence. Previously, newly elected Prime Minister Shinzo Abe has threatened to revoke the law if the central bank did not raise its inflation target to match his own of 2% and engage in unlimited monetary easing.
BoJ has since raised its inflation target to 2%. Media reports out on Monday speculated that Abe could name a new BoJ governor as early as this week and it is widely expected that the new central bank chief will be one that shares Abe’s view of unlimited easing being necessary to fight deflation and stimulate the fragile Japanese economy.
Elsewhere, EUR/JPY fell 0.30% to 125.09 while AUD/JPY lost 0.13% to 96.73. NZD/JPY tumbled 0.52% to 79.03.