Yen Pares Gain as BBC Says Kuroda In­ter­view Con­ducted in June

The Pak Banker - - COMPANIES/BOSS -

The yen pared an ad­vance against the dol­lar as it emerged that an in­ter­view in which Bank of Ja­pan Gov­er­nor Haruhiko Kuroda dis­missed the idea of so­called he­li­copter money was con­ducted in June.

The Ja­panese cur­rency ear­lier jumped more than 1 per­cent after, in com­ments broad­cast on BBC Ra­dio 4 on Thurs­day, Kuroda said there was no need or pos­si­bil­ity for such a strat­egy.

Kuroda also re­peated that he is de­ter­mined to rid Ja­pan of its de­fla­tion­ary mind­set and that there are no sig­nif­i­cant lim­i­ta­tions to fur­ther mon­e­tary eas­ing if needed. The BOJ's next pol­icy de­ci­sion is due on July 29.

"The mar­ket had to un­wind part of that ini­tial re­ac­tion," said John Hardy, head of for­eignex­change strat­egy at Saxo Bank A/S in Hellerup, Den­mark. "If it was some­thing that he said very re­cently, it would be maybe a sign that he dis­ap­proves of the lat­est mar­ket ac­tion. Whereas if it's a cou­ple of weeks old, it's not a di­rect com­mu­ni­ca­tion aimed at what the mar­ket is do­ing.

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