BoJ Governor Kuroda keeps alive expectations for further easing – MUFG

Lee Hardman, Currency Analyst at MUFG, suggests that the firmer US dollar has helped to lift USD/JPY back above the 100.00-level after avoiding last week a close below for what would have been the first time since November 2013.

Key Quotes

“The yen has been undermined as well by dovish comments from BoJ Governor Kuroda over the weekend. He stated that there is a “sufficient chance” for more monetary easing in September with the decision on whether to act to be based on the comprehensive review of the effectiveness of their easing measures implemented to date. He also stated that there was room for rates to move deeper into negative territory. Our analysts in Tokyo do not expect further easing to be delivered in September, but even if it is delivered we doubt that more of the same easing measures will prove effective at re-weakening the yen on sustainable basis.”