The volatility in the JPY this morning is being attributed to the talk regarding BOJ buying of foreign bonds.
A former BOJ deputy Governor made a call for the BOJ to buy about $650 billion of foreign bonds in order to weaken the Yen. From what I can gather, FinMin Azumi said that it would be difficult for the government to accept such a call. That’s why I find it strange that the JPY fell sharply, ostensibly on Azumi’s comments.
Perhaps something has been lost in some translation somewhere.
