Kuroda says yen “not likely” to rise against the dollar, in an interview with the Wall Street Journal.
Throughout the interview, Mr. Kuroda gave a bullish view of the Japanese economy, but he also left open the option of further easing should the recovery stray from the BOJ’s intended course.
…and the yen is strengthening on the headlines. USD/JPY down to 101.77.
He also drew a line under inflation:
“We don’t think it will go below 1.0%,” Mr. Kuroda said, ruling out the possibility for the first time publicly. “It will stay around 1.25% for several months before starting to accelerate toward 2.0%.”
Here are is comments on USD/JPY, he also said the yen is “still quite strong” against the euro:
“In this kind of situation, I don’t think it’s reasonable to expect the yen to appreciate against the dollar.”
Mr. Kuroda went on to say that when the time came for the BOJ to withdraw its easing measures after having achieved its stated price goals, he didn’t expect the yen to rise. “I really don’t think the yen should appreciate even in that situation.”
Clearly the market isn’t moved by Kuroda’s talk.
The WSJ also has an article decoding Kuroda and analyzing him.
