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☆ Yen near 10-week low, dollar buoyant as traders adjust rate bets
▼ + stars: | 2024-02-09 | by ( ) www.cnbc.com time to read: +3 min

The yen wallowed near a 10-week low on Friday, while the dollar ground towards a fourth weekly advance as traders dialed back bets on how quickly the Bank of Japan, or BOJ, will raise interest rates and how soon the Federal Reserve will cut them. The yen wallowed near a 10-week low on Friday, while the dollar ground towards a fourth weekly advance as traders dialed back bets on how quickly the Bank of Japan, or BOJ, will raise interest rates and how soon the Federal Reserve will cut them. The yen was little changed at 149.315 per dollar in early Asian trading, after dipping to 149.48 late in the previous session for the first time since Nov. 27. Both currencies have been relatively resilient with officials from the European Central Bank and Bank of England pushing back against market wagers on early rate reductions. New Zealand's dollar gained 0.34% to $0.6117, supported by bets for a delayed start to Reserve Bank rate cuts - or even the potential for further hikes - after data this week showed a stronger-than-forecast jobs market.

Persons: Shinichi Uchida, Shunichi Suzuki, Jerome Powell, FOMC, Richard Franulovich, Sharon Zollner, bitcoin Organizations: Bank of Japan, Federal Reserve, BOJ, Japanese Finance, Traders, European Central Bank and Bank of England, Reserve, ANZ Locations: Tokyo

Japan's benchmark Nikkei 225 rose nearly 0.1% to 36,897.42, slipping back from earlier gains that took it briefly to a 34-year high. In prior months, such a report may have hurt the stock market because of concerns that it would mean a longer wait for cuts to interest rates from the Federal Reserve. The latest set of earnings reports from big U.S. companies also kept the stock market mixed overall. It gave a forecast for expected profit across 2024 that fell short of analysts’. In other trading, benchmark U.S. crude lost 6 cents to $76.16 a barrel in electronic trading on the New York Mercantile Exchange.

Persons: Shinichi Uchida, Australia's, ”, Ryan Detrick, Ralph Lauren Organizations: TOKYO, Nikkei, Investors, Bank of Japan, SoftBank Group Corp, Nissan, Dow Jones, Nasdaq, Carson Group, Federal Reserve, Walt Disney Co, Arm Holdings, PayPal, Global, New York Community Bancorp, Traders, New York Mercantile Exchange, Brent, U.S . Locations: U.S, Asia, U.K

Japanese Finance Minister Shunichi Suzuki arrives for a news conference during the annual meeting of the International Monetary Fund and the World Bank in Marrakech, Morocco, October 13, 2023. REUTERS/Susana Vera/File Photo Acquire Licensing RightsTOKYO, Nov 14 (Reuters) - Japanese Finance Minister Shunichi Suzuki said on Tuesday that the government would take all possible steps necessary to respond to currency moves, repeating his usual mantra that excessive swings were undesirable. Suzuki made the remarks when asked about impacts from the weak yen on households which have been pressured by rising living costs due to higher import prices for fuel and food. "What's important is to maximise positive effects from the weak yen while mitigating negatives," Suzuki told reporters. Japan last intervened in the currency market - selling dollars and buying yen - in October last year.

Persons: Shunichi Suzuki, Susana Vera, Suzuki, Shinichi Uchida, Tetsushi Kajimoto, Kaori Kaneko, Satoshi Sugiyama, Chang, Ran Kim Organizations: International Monetary Fund, World Bank, REUTERS, Rights, Japanese Finance, Bank, Bank of, Thomson Locations: Marrakech, Morocco, Japan, U.S

☆ BOJ looks to corp profits, household incomes to boost wages, prices
▼ + stars: | 2023-11-14 | by ( ) www.reuters.com time to read: +1 min

Japanese national flag is hoisted atop the headquarters of Bank of Japan in Tokyo, Japan September 20, 2023. REUTERS/Issei Kato/File Photo Acquire Licensing RightsTOKYO, Nov 14 (Reuters) - The Bank of Japan (BOJ) will aim to create conditions for raising prices and lifting wages through increases in corporate profits and household incomes instead of cost-push inflation, its deputy governor Shinichi Uchida said on Tuesday. "The BOJ will continue to support economic activity and strive to create an environment wherein it's easy to raise wages," he said during a debate at the parliament's upper house committee on financial affairs. Even with upward pressure on long-term interest rates, the BOJ does not believe the 10-year yield will significantly exceed 1%, said Kazuhiro Masaki, director-general of the central bank's monetary affairs department. Reporting by Satoshi Sugiyama; Editing by Tom Hogue & Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.

Persons: Issei Kato, Shinichi Uchida, Kazuhiro Masaki, Satoshi Sugiyama, Tom Hogue Organizations: Bank of Japan, REUTERS, Rights, Thomson Locations: Tokyo, Japan

☆ Analysis: BOJ's hawkish tilt suggests end to super-easy policy approaching
▼ + stars: | 2023-09-11 | by ( Leika Kihara | ) www.reuters.com time to read: +5 min

Another board member, Junko Nakagawa, laid out the conditions for ending negative rates, notably a continued improvement in household confidence. "When we see many people share prospects that wages will keep rising, we may be able to exit (negative rates)." Less than half expect negative rates to end in 2024. There seems to be no consensus within the BOJ board, however, on when or how the bank would dismantle Kuroda's complex policy framework. Ueda said the BOJ could end negative rates if it believed that inflation would sustainably hold above the target.

Persons: Kazuo Ueda, Kim Kyung, Ueda, Tamura, Haruhiko Kuroda, Naoki Tamura, Kuroda, Mari Iwashita, Hajime Takata, Junko Nakagawa, Shinichi Uchida, Leika, Sam Holmes Organizations: Japan, REUTERS, Bank of Japan, Daiwa Securities, Reuters, Thomson Locations: Tokyo, Japan, TOKYO, U.S

☆ BOJ policymaker signals chance of policy tweak early next year
▼ + stars: | 2023-08-30 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

The remarks are the strongest signal to date by a Bank of Japan (BOJ) policymaker that rising inflation and wages could prod the bank to take bolder steps towards phasing out its radical stimulus. "About a decade has passed since the BOJ began efforts to sustainably and stably achieve its 2% inflation target. For now, the BOJ must sustain monetary easing to scrutinise wage and price developments, said the former commercial banker. "Abandoning negative rates will obviously be among options" if the BOJ were to normalise policy, he said. "Even if the BOJ were to end negative rates, it won't be scaling back monetary easing as long as it can keep interest rates low."

Persons: Issei Kato, Tamura BOJ, KUSHIRO, Naoki Tamura, Tamura, Kazuo Ueda, Shinichi Uchida, Ueda, Leika Kihara, Muralikumar Anantharaman, Sam Holmes Organizations: Bank of Japan, REUTERS, Reuters, Thomson Locations: Tokyo, Japan

☆ Insight: BOJ makes bold shift as yen risks grow too big to ignore
▼ + stars: | 2023-08-03 | by ( Leika Kihara | ) www.reuters.com time to read: +9 min

The BOJ's decision shook markets on Friday and contrasted sharply with Ueda's more cautious comments in recent months about the dangers of retreating too quickly from accommodative Kuroda-era policies. "There's also a small but probable risk of inflation overshooting in Japan, which gave the BOJ reason to act." NEW PRIORITIESThe BOJ's policy decision last week signalled to investors that it would now allow the 10-year government bond yield to move closer to 1% before it intervenes. 'BIT BY BIT'The shift in thinking gained momentum at the BOJ's June policy meeting, but not enough to turn the tide. It was a test case, or a preliminary exercise, toward future policy normalisation," said former BOJ board member Takahide Kiuchi.

Persons: Issei Kato, Kazuo Ueda, Haruhiko Kuroda, Fumio, accommodative Kuroda, Ueda, YCC, There's, Hirokazu Matsuno, Seiji Adachi, Asahi Noguchi, Ryozo Himino, Shinichi Uchida, Uchida, Masato Kanda, Kanda, Takahide, Leika Kihara, Takaya Yamaguchi, Takahiko Wada, Kentaro Sugiyama, Yoshifumi, Sam Holmes Organizations: Bank of Japan, REUTERS, TOKYO, Bank, Ueda, Reuters, BIT, Asahi, Nikkei, Thomson Locations: Tokyo, Japan

☆ BOJ debated inflation overshoot risk in June, offering insight into July tweak
▼ + stars: | 2023-08-02 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

A man walks at the headquarters of Bank of Japan in Tokyo, Japan, January 18, 2023. While some said they expected inflation to slow back below 2% as cost-push factors dissipate, one member said the risk of inflation staying elevated above the level "remained high." Several board members said service prices were rising in a sign domestic factors were playing an increasing role in pushing up Japan's inflation, the minutes showed. "We cannot rule out the chance we are underestimating the sustainability of inflation in Japan," one of the nine board members was quoted as saying in the minutes. The outlook for medium- and long-term inflation expectations was crucial to how the BOJ operates YCC, another member said.

Persons: Issei Kato, BOJ's, Shinichi Uchida, Leika Kihara, Tom Hogue Organizations: Bank of Japan, REUTERS, Thomson Locations: Tokyo, Japan, TOKYO

☆ Bank of Japan may keep ultra-low rates, debate tweak to yield cap
▼ + stars: | 2023-07-27 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

The Nikkei newspaper reported the central bank will maintain its 0.5% cap for the 10-year government bond yield, but discuss allowing long-term interest rates to rise above that level by a certain degree. Under yield curve control (YCC), the BOJ guides the 10-year bond yield around 0% and sets an allowance band of 0.5% above and below that target. At the two-day meeting ending on Friday, the BOJ is widely expected to maintain the 10-year yield target and a -0.1% target set for short-term interest rates. The BOJ's meeting comes after the Federal Reserve's decision on Wednesday to raise interest rates, a move that further widens the interest rate gap between the United States and Japan. That changed last year, when soaring commodity prices pushed inflation above the 2% target and gave investors reason to attack the yield cap.

Persons: Ueda, Kazuo Ueda, Shinichi Uchida's, Leika Kihara, Sam Holmes, Conor Humphries Organizations: Nikkei, Bank of Japan, Reuters, Federal, Thomson Locations: TOKYO, United States, Japan

Some market players bet the central bank could widen the allowance band set around its yield target to arrest market distortions caused by its heavy bond buying. With the 10-year yield moving stably below the 0.5% yield cap, however, many BOJ policymakers see no imminent need to take fresh steps against the side-effects of YCC, the sources said. Notwithstanding abrupt moves in the bonds and yen, the BOJ is likely to make no changes to its policy framework next week, they said. "We expect the BOJ will keep major policy levers unchanged next week," said Stefan Angrick, senior economist at Moody's Analytics. More than three-quarters of economists polled by Reuters said they expect the BOJ to keep policy steady including its yield control scheme next week.

Persons: Shinichi Uchida's, Kazuo Ueda's, Stefan Angrick, Leika Kihara, Takahiko Wada, Sam Holmes Organizations: Bank of Japan, Moody's, Reuters, Thomson Locations: BOJ, TOKYO

☆ Take Five: School's (not) out for summer
▼ + stars: | 2023-07-21 | by ( ) www.reuters.com time to read: +5 min

LONDON, July 21 (Reuters) - The peak holiday season is gearing up, but school's not quite out for summer in financial markets. Also in focus are earnings from some of the massive tech and growth stocks that have led markets higher this year. Reuters Graphics2/ SUMMER READINGBefore they go on their summer break, ECB policymakers have a well-flagged rate hike to deliver. Rate-setters' summer reading list just got longer. Second-quarter earnings are expected to decrease 9.2% from a year earlier, according to I/B/E/S data from Refinitiv, with aggregate earnings likely to be weighed down by poor performance from energy companies.

Persons: school's, Ira Iosebashvili, Kevin Buckland, Naomi Rovnick, Alun John, Dhara, Jerome Powell, Christine Lagarde, Kazuo Ueda's, Shinichi Uchida, Uchida, Ueda, Stocks, it's, Dhara Ranasinghe, Muralikumar Organizations: U.S . Federal Reserve, European Central Bank and Bank of Japan, Reserve, Microsoft, Reuters, ECB, Bank of Japan, Barclays, People's Party, Socialist Workers ' Party, Thomson Locations: Spanish, Ira, New York, Tokyo, London, Europe, SPAIN, Spain

Global financial markets have been closely watching Japan's wage data, as Bank of Japan Governor Kazuo Ueda regards pay growth as a key gauge to consider in deliberations about a shift in policy. Regular wages rose 1.8% in May from a year before, labour ministry data showed, the biggest gain since February 1995. The strong base pay growth boosted worker's total cash earnings, or nominal wages, by 2.5% in May, after a revised 0.8% increase logged in April. Still, real wages contracted 1.2% in May, the 14th consecutive month of year-on-year declines, as relentless consumer inflation outstrips nominal pay growth and squeezes households' buying power. On a seasonally adjusted month-on-month basis, household spending was down 1.1%, versus an estimated 0.5% gain to mark a fourth month of decline.

Persons: Kazuo Ueda, Kuroda, Hisashi Yamada, Rengo, Takumi Tsunoda, Shinichi Uchida, Taro Saito, Satoshi Sugiyama, Kantaro, Tetsushi Kajimoto, Sam Holmes Organizations: Global, Bank of Japan, Hosei University, Shinkin Central Bank Research, Nikkei, BOJ's, NLI Research, Thomson Locations: TOKYO

☆ Bank of Japan deputy governor Uchida vows to keep yield control for now, Nikkei reports
▼ + stars: | 2023-07-06 | by ( Leika Kihara | ) www.reuters.com time to read: +2 min

Summary BOJ 'strongly acknowledges' side-effects of YCC - UchidaUchida rules out chance of early end to negative ratesJapan seeing signs of change in corporate behaviour - UchidaTOKYO, July 7 (Reuters) - Bank of Japan (BOJ) Deputy Governor Shinichi Uchida said the central bank will maintain its yield curve control policy from the perspective of sustaining ultra-loose monetary conditions, the Nikkei newspaper reported on Friday. With inflation exceeding its 2% target for more than a year, markets are simmering with speculation the BOJ will tweak yield curve control (YCC) - a policy that guides short-term interest rates at -0.1% and caps the 10-year bond yield around 0%. Uchida said the BOJ "strongly acknowledges" the side-effects of YCC such as the impact on market function, according to Nikkei. But the central bank must support the economy amid recent signs of change in corporate wage and price-setting behaviour, Uchida was quoted as saying. Reporting by Leika Kihara; Editing by Leslie Adler and Sandra MalerOur Standards: The Thomson Reuters Trust Principles.

Persons: Uchida Uchida, Uchida TOKYO, Shinichi Uchida, Uchida, YCC, Leika Kihara, Leslie Adler, Sandra Maler Organizations: Bank of Japan, Nikkei, Thomson Locations: Japan

☆ BOJ to continue monetary easing to achieve inflation target
▼ + stars: | 2023-04-12 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

TOKYO, April 12 (Reuters) - The Bank of Japan will continue monetary easing to achieve its 2% inflation target accompanied by wage hikes in a sustainable and stable manner, new deputy governor Shinichi Uchida said on Wednesday. The comment followed Ueda's view earlier that it was appropriate to maintain the central bank's ultra-loose monetary policy for now as inflation has yet to sustainably meet its 2% target. Uchida said Japanese financial institutions are equipped with sufficient capital and fund-raising bases, making any impact from Western banking problems since March "limited." "The BOJ will continue with monetary easing so as to achieve the price stability target in a sustainable and stable manner, while supporting the economy together with wage hikes." More Japanese households are expecting prices to rise a year from now, a BOJ quarterly survey showed on Wednesday, raising pressure on the central bank to adjust or ditch its yield curve control (YCC) policy.

[1/3] New Governor of Bank of Japan Kazuo Ueda waits for Japanese Prime Minister Fumio Kishida before their meeting at prime minister?s official residence in Tokyo, Japan, April 10, 2023. "Given high economic uncertainty, the BOJ will communicate closely with the government and guide monetary policy flexibly," Ueda told reporters after meeting with Prime Minister Fumio Kishida to receive his official appointment letter. In parliamentary confirmation hearings in February, Ueda has stressed the need to keep ultra-easy policy to ensure Japan sustainably achieves the BOJ's 2% inflation target backed by wage growth. Ueda will chair his first policy meeting on April 27-28, when the board produces fresh quarterly growth and price forecasts extending through fiscal 2025. Ueda served as BOJ board member from 1998 to 2005, during which the central bank introduced zero interest rates and then quantitative easing to combat deflation and economic stagnation.

☆ Japan's new central bank chief assumes office as global risks loom
▼ + stars: | 2023-04-10 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

[1/2] The Japanese government's nominee for the Bank of Japan (BOJ) Governor Kazuo Ueda speaks during a hearing session at the lower house of the parliament in Tokyo, Japan, February 24, 2023. The 71-year-old academic's term began on Sunday, succeeding Haruhiko Kuroda, whose second, five-year term ended on Saturday. Ueda and his two deputy governors, Shinichi Uchida and Ryozo Himino, will hold a joint news conference at 1015 GMT on Monday. Japan's long-stagnant inflation and wage growth are showing budding signs of change. Ueda served as BOJ board member from 1998 to 2005, during which the central bank introduced zero interest rates and then quantitative easing to combat deflation and economic stagnation.

☆ BOJ's new deputy chief flags chance of change to yield control policy
▼ + stars: | 2023-03-29 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

"If various conditions fall in place, some sort of change to yield curve control may become necessary. If conditions turn positive, (a tweak) will undoubtedly become a possibility," Uchida told parliament. Uchida said trend inflation was "extremely important" in judging whether Japan will sustainably meet the BOJ's 2% price target. Rather than focusing on a particular set of indicators, however, the central bank will look comprehensively at various data in setting monetary policy, he added. A career central banker, Uchida is one of two deputy governors.

☆ Bank of Japan keeps low rates as Kuroda sticks to script at swan song meeting
▼ + stars: | 2023-03-10 | by ( ) edition.cnn.com time to read: +4 min

At its two-day meeting that ended on Friday, the BOJ maintained its short-term interest rate target at -0.1% and that for the 10-year bond yield around 0%. It also left unchanged a band set around the 10-year yield target that allows the yield to rise up to 0.5%. “The decision to uphold policy rates comes at a cost. Many investors expect the central bank to phase out YCC when Kuroda’s successor, Kazuo Ueda, takes the helm in April. “The BOJ will likely abandon its 10-year bond yield target, while maintaining negative interest rates, to arrest distortions in the yield curve,” he said.

☆ Kuroda defends Bank of Japan's ultra-dovish stance in his final policy meeting
▼ + stars: | 2023-03-10 | by ( Jihye Lee | ) www.cnbc.com time to read: +3 min

Haruhiko Kuroda, governor of the Bank of Japan (BOJ), at the central bank's headquarters in Tokyo, Japan, on Thursday, May 27, 2021. Bloomberg | Bloomberg | Getty ImagesJapan's outgoing central governor Haruhiko Kuroda defended the Bank of Japan's ultra-dovish monetary policy stance at his final policy meeting on Friday. Kuroda has led the central bank's ultra-dovish monetary policy for the past decade – even as global central banks in recent months raised interest rates in a bid to tame inflation. "Financial conditions have been accommodative on the whole, although weakness in firms' financial positions has remained in some segments," the central bank said. New BOJ leadershipJapan's upper house in parliament approved Ueda to be the next central bank governor, Kyodo reported.

☆ BOJ set to keep ultra-low rates at Kuroda's final policy meeting
▼ + stars: | 2023-03-09 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

"After conducting an examination of its policy framework, the BOJ will either abandon the 10-year yield target or shift to one targeting a shorter duration," she said. At the two-day meeting ending on Friday, the BOJ is set to maintain its short-term interest rate target at -0.1% and that for the 10-year bond yield around 0%. Some market players bet the BOJ could widen the band set around the 10-year yield target, allowing the yield to rise up to 0.75%, from the current 0.5%, as early as Friday. But many analysts polled by Reuters expect any tweak in YCC to happen after Ueda takes over as new governor. Ueda will chair his first policy meeting on April 27-28, when the board will produce closely watched, fresh quarterly growth and price forecasts extending through fiscal 2025.

The dollar index , which measures the currency against a basket of peers, was flat at 104.64, but was still set for a February gain of 2.6%, its first monthly increase since September. The next move in the dollar is really a function of how the February data starts to play out in March," Atrill said. U.S. Treasury yields have also moved higher with the inflation sensitive two-year yield back at three-and- a-half-month highs. [US/}The dollar on Tuesday gained particularly against the Japanese yen , climbing 0.44% to 136.84, its highest in over two months. ,Elsewhere, sterling built on its gains from the previous session against the dollar, rising 0.2% to $1.2082.

☆ EUROPE Market mood downbeat ahead of raft of data
▼ + stars: | 2023-02-28 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Anshuman DagaThe overarching downbeat mood among investors shows no signs of improving as markets become increasingly wary of a further rise in borrowing costs. Although U.S. markets took a breather and rose on Monday, they ended well below the day's highs and Asian markets were back in the red on Tuesday after gaining in early trade. Tuesday's U.S. consumer confidence data will be especially scrutinised for households' views on economic prospects and inflation expectations. European markets will deal with CPI data due from France and Spain. While inflation has eased a bit, providing some support to markets, a barrage of economic data suggests that inflation is stickier than expected, reinforcing the "higher-for-longer" rates view.

Rather, it must come up with ideas" to mitigate the costs and help sustain stimulus, Uchida told an upper house confirmation hearing. The remarks follow those of incoming BOJ Governor Kazuo Ueda on Monday suggesting his preference to spend "plenty of time" if the central bank were to conduct a review of its policy framework. While stressing that it was premature to discuss an exit strategy from ultra-loose monetary policy, Uchida said any exit would involve adjustments in the BOJ's interest rate targets and the level of its balance sheet. "In what order and at what timing the BOJ will make these adjustments will depend on economic and financial developments at the time," Uchida said. The BOJ can tap its experience conducting ultra-loose policy and dealing with market forces, to ensure it can steer a smooth exit regardless of economic conditions at the time, he said.

TOKYO, Feb 28 (Reuters) - Incoming Bank of Japan (BOJ) Deputy Governor Shinichi Uchida said on Tuesday the central bank shouldn't modify its ultra-easy monetary policy just to address the side-effects of prolonged stimulus. It shouldn't modify easy policy just because there are side-effects. Rather, it must come up with ideas" to mitigate the costs and help sustain stimulus, Uchida told an upper house confirmation hearing. The remark follows that of incoming BOJ Governor Kazuo Ueda on Monday suggesting his preference to spend "plenty of time" if the central bank were to conduct a review of its policy framework. Markets are rife with speculation the BOJ will overhaul its bond yield control policy once Ueda succeeds incumbent Governor Haruhiko Kuroda, whose term ends in April.

☆ Incoming BOJ deputy head brushes aside near-term tweak to easy policy
▼ + stars: | 2023-02-28 | by ( ) www.cnbc.com time to read: +1 min

Bank of Japan deputy governor nominee Shinichi Uchida speaks during a hearing at the lower house of parliament on Feb. 24, 2023 in Tokyo. Incoming Bank of Japan (BOJ) Deputy Governor Shinichi Uchida on Tuesday brushed aside the chance of an immediate overhaul of ultra-loose monetary policy, suggesting that any review of its policy framework could take about a year. It shouldn't modify easy policy just because there are side-effects. Rather, it must come up with ideas" to mitigate the costs and help sustain stimulus, Uchida told an upper house confirmation hearing. "Any such special type of examination is better done by taking a wide perspective looking at various factors," he added.

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