- BOJ’s Adachi: Tightening policy to stem yen decline would squeeze corporate funding
Market news
BOJ’s Adachi: Tightening policy to stem yen decline would squeeze corporate funding
Bank of Japan (BOJ) board member Seiji Adachi is back on the wires now, via Reuters, speaking on the negative effect of the monetary policy tightening to curb the yen's downfall.
Key quotes
Trying to stem weak yen by tightening monetary policy would squeeze corporate funding.
Downside risks to Japan’s output appear to be heightening but that is offset by improvement in household sentiment.
Degree of next fiscal year's wage hike will be key to whether Japan can pull out of deflation.
If Fed rate hike cools the US economy, there is a risk that could reverse current weak-yen trend.
Market reaction
USD/JPY is off the highs, back to test 130.00 on the above comments. The pair is currently trading at 130.02, down 0.07% on the day. Falling yields are also adding to the weight on the major.
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