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Yen Marginally Stronger Following MoF & BoJ Comments

JPY

USDJPY fell to an intraday low of 143.24 following comments from vice finance minister Kanda that options re FX intervention wouldn’t be ruled out and the BoJ summary of opinions showed that one member asked for an early revision of YCC. It has recovered somewhat since and is currently around 143.57, down 0.1%.

  • EURJPY is off its low of 156.2 but at 156.56 is lower than the intraday high earlier of 156.74. AUDJPY is flat at 95.99 after a low of 95.60.
  • Kanda said today that moves in the JPY were the focus and not the level but recent developments had been “rapid”. He reiterated that the currency should move in line with fundamentals.
  • The BoJ summary of opinions showed that policy is likely to remain accommodative but one member thought inflation wouldn’t fall below 2% in FY23.

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