The Japanese yen fell against major currencies during early Monday morning trade, as investors followed comments from Japanese Prime Minister Fumio Kishida, who said he will take into consideration the economic situation in April when selecting the next governor for the Bank of Japan (BOJ). However, the appointment needs to be approved by both houses of parliament in order to take effect. Therefore, the administration has to make a decision much earlier to give parliament time to go through the proceedings and approve Kishida’s selection before Kuroda’s term expires. “The Bank of Japan and the government work as one to achieve economic growth that involves structural wage increases and to reach the goal of stable and sustainable price stability,” said Kishida. “This basic position will not change.”
During the previous week, Japanese policy makers kept interest rates very low, keeping the central bank’s refinancing rate at -0.10% as expected. The Japanese yen fell after the BoJ meeting, as the markets were expecting a more hawkish direction. The BoJ was expected to ease its yield curve control policy, but the central bank left all policy settings unchanged this month.
Japan is committed to resolving territorial issues with Russia
On the political front, Japanese Prime Minister Fumio Kishida said on Monday that Tokyo will continue the path of resolving territorial issues with Russia, regardless of the strained relations over the Ukraine crisis. In his speech marking the start of the 150-day regular session of the House of Representatives, Kishida stressed that “Russian aggression against Ukraine” had led to a “difficult situation” developing between Tokyo and Moscow, but stressed that his country “will continue to stick to its position.” A policy aimed at resolving the territorial issue and concluding a peace treaty. Russia and Japan did not formally sign a peace treaty after World War II, as disputes over the Kuril Islands remain. Last March, the Kremlin withdrew from the negotiations after Tokyo imposed sanctions over the Ukraine conflict.
The Japanese yen fell against the major currencies
In terms of trading, the US dollar rose against the Japanese yen by 0.35%, to trade at 130.0330. The New Zealand dollar also rose against the Japanese yen, by 0.45%, to reach 84.22650, and the pound sterling rose against the Japanese yen, by 0.50%, as the pair recorded 161.4145 levels.
Meanwhile, the Canadian Dollar rose against the Japanese Yen by 0.53%, to trade the CAD/JPY at 97.35000. The Australian dollar also rose against the Japanese yen, by 0.61%, to reach 90.86500. The Swiss Franc advanced against the Japanese Yen by 0.63%, as the pair recorded 141.6895 levels. Finally, the euro rose against the Japanese yen by 0.75%, to trade at 141.7490.