Following his meeting with Japan’s Prime Minister Fumio Kishida, Bank of Japan (BOJ) Governor Haruhiko Kuroda said that the “cost of buying dollars to purchase commodities is one of the main factors behind yen weakening.”
Additional comments
Discussed economy, financial markets in Japan and overseas with PM Kishida.
Discussed global economy, situations regarding Russia, Ukraine with PM Kishida.
Discussed with pm post-covid global economy, Russia and situation in Ukraine.
Told PM fx moves should reflect economic fundamentals.
PM Kishida made no specific request on monetary policy.
Did not discuss anything in particular for forex.
Don't think monetary adjustment would have a direct impact on currencies.
Told PM fx moves should reflect economic fundamentals.
Don't think BOJ’s market operation is directly affecting fx moves.
Yen is weakening but it is driven partly by dollar buying for energy imports.
Rising US interest rates is also a factor behind yen weaking.
Market reaction
USD/JPY is attempting a recovery towards 122.00 on BOJ Kuroda’s comments and the central bank’s emergency bond buys.