Bank of Japan (BoJ) Governor Kazuo Ueda said in his parliamentary speech on Tuesday, “when achievement of 2% inflation stably and sustainably in sight, we will seek an exit from negative rates, YCC and other large scale monetary easing steps.”
Additional quotes
In what order we phase out various monetary easing tools will depend on economic, price, financial conditions at the time.
It is possible to control short-term rates at appropriate level by paying interest on reserves parked with BoJ.
If inflation accelerates and warrants monetary tightening, it is possible to do so by raising rates without scaling back BoJ’s bond holdings.
There are various ways to push short-term rates to positive territory.
One way would be to apply positive interest to reserves parked with BoJ, which would push up overnight call rate slightly below that level.
Market reaction
USD/JPY is holding the latest uptick near 147.40, as the fresh comments from BoJ Governor Ueda offer little comfort to the Japanese Yen. The pair is up 0.33% on the day.
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 Euro.
USD
EUR
GBP
CAD
AUD
JPY
NZD
CHF
USD
-0.05%
0.02%
-0.02%
0.02%
0.46%
-0.01%
0.00%
EUR
0.05%
0.05%
0.03%
0.06%
0.50%
0.02%
0.05%
GBP
-0.01%
-0.06%
-0.03%
0.02%
0.44%
-0.01%
-0.01%
CAD
0.02%
-0.03%
0.03%
0.04%
0.47%
0.00%
0.02%
AUD
-0.02%
-0.07%
-0.01%
-0.04%
0.42%
-0.04%
-0.02%
JPY
-0.47%
-0.50%
-0.45%
-0.48%
-0.43%
-0.46%
-0.45%
NZD
0.01%
-0.03%
0.01%
0.00%
0.04%
0.47%
0.02%
CHF
-0.01%
-0.03%
0.01%
-0.03%
0.02%
0.45%
-0.01%
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 Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).
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