Bank of Japan Governor Kuroda drops the "intervention' bombshell word.
Enough to trigger the test-reading algos into action!
USD/JPY drops.
Comments, Headlines via Reuters:
- recent forex moves somewhat rapid
- hard to gauge impact of fx intervention
- forex moves have big impact on japan's economy, prices so will continue to watch moves carefully
- what's important is for forex to move stably reflecting fundamentals
- dominant market view is that recent dollar/yen rise is driven by strong u.s. growth, rising u.s. interest rates, Japanese importers' dollar buying
- no change to view weak yen has positive impact on japan's economy as a whole
- must be mindful that weak yen impact on corporate sectors, economic entities could be uneven
- the rise in commodity prices has a much bigger impact than the weak yen in pushing up Japan's import costs
more to come
