Monday, 11 September 2023 08:39 WIB | CURRENCIES |mata uang yenDolarYen

The yen advanced against all Group-of-10 currencies and government bonds slumped as traders reacted to potentially hawkish comments from Bank of Japan Governor Kazuo Ueda on the negative interest rate policy.

Japanese bank shares also jumped after Ueda told the Yomiuri newspaper it’s possible the BOJ will have enough information by year-end to judge if wages will continue to rise — a key factor in deciding whether or not to end its super-easy policy. 

If the central bank becomes confident prices and wages will keep going up sustainably, ending negative interest rates is among the options available, Ueda said in the interview published Saturday. Still, he said the BOJ is some distance away from achieving its price stability target and would continue its patient monetary easing.

The yen strengthened as much as 0.8% to 146.67 per dollar in early Asia trading Monday before trading 0.6% higher at 147.00 as of 10:18 a.m. in Tokyo. Japan’s benchmark bond yield rose 4.5 basis points to 0.695%, the highest level since 2014. That helped push up the Topix banks index as much as 3.7% to its peak level since August 2008.

Source: Bloomberg

The yen advanced against all Group-of-10 currencies and government bonds slumped as traders reacted to potentially hawkish comments from Bank of Japan Governor Kazuo Ueda on the negative interest rate policy.

Japanese bank shares also jumped after Ueda told the Yomiuri newspaper it’s possible the BOJ will have enough information by year-end to judge if wages will continue to rise — a key factor in deciding whether or not to end its super-easy policy. 

If the central bank becomes confident prices and wages will keep going up sustainably, ending negative interest rates is among the options available, Ueda said in the interview published Saturday. Still, he said the BOJ is some distance away from achieving its price stability target and would continue its patient monetary easing.

The yen strengthened as much as 0.8% to 146.67 per dollar in early Asia trading Monday before trading 0.6% higher at 147.00 as of 10:18 a.m. in Tokyo. Japan’s benchmark bond yield rose 4.5 basis points to 0.695%, the highest level since 2014. That helped push up the Topix banks index as much as 3.7% to its peak level since August 2008.

Source: Bloomberg

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