The yen climbed on Monday on news that the Japanese government could soon revise a joint statement with the Bank of Japan (BOJ) over the latter's inflation target, potentially paving the way for a tweak in the BOJ's ultra-loose monetary policy.
The yen was last 0.34% stronger at 136.24 versus the dollar, after having jumped more than 0.5% to a high of 135.78 earlier in the session.a joint statement it signed with the BOJ in 2013 that commits the central bank to meeting a 2% inflation target as soon as possible, sources told Reuters.
The revision, if made, would be done after a new BOJ governor is appointed in April, a move that may heighten the chance of a tweak to incumbent governor Haruhiko Kuroda's ultra-loose monetary policy. That policy stance and the resulting interest rate differentials with the rest of the world have caused the yen to plunge more than 15% this year.
"I think the upshot is, this perhaps provides timely flexibility, but it doesn't bind monetary policy bias one way or another," said Vishnu Varathan, head of economics and strategy at Mizuho Bank. "And so at the end of the day, it doesn't necessarily have an imminent or an outsized impact on the yen, at least until clarity emerges on intent and execution."
Elsewhere, the dollar edged lower in Asia trade, with sterling last 0.35% higher at $1.2183, after falling 1% last week as investors bet that the Bank of England might beThe euro gained 0.18% to $1.0603, while the Aussie rose 0.37% to $0.6711.A slew of central bank meetings last week saw the BoE, the U.S. Federal Reserve and the European Central Bank each raising rates by 50 basis points, with
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