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☆ Japan's inflation hits 40-year high as weak yen fans import costs
▼ + stars: | 2022-11-17 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

It also confirmed CPI growth remained above the Bank of Japan's (BOJ) 2% inflation goal for a seventh straight month. A slight rebound by the weak yen and planned government support for consumers to pay for higher energy bills would also rein in prices. "I expect inflation to peak by year-end and the rise in prices to start diminishing in the new year," Minami said. Kuroda has argued that global commodity costs account for half of the magnitude of price rises and that cost-push inflation will not last long. In a sign subcontractors are struggling with wholesale price pressures, the corporate goods price index jumped 9.1% in the year to October.

TOKYO, Nov 16 (Reuters) - The safe-haven U.S. dollar firmed in volatile trading on Wednesday as markets took stock of geopolitical risks following news of a Russian-made rocket striking NATO-member Poland. Russia denied it was responsible for the explosion but the report sparked turbulent trading overnight as fears of the war in Ukraine spilling over to its neighbors rattled investors. "The market is trying to size up the risk and what that really means," said Moh Siong Sim, currency strategist at Bank of Singapore. "Right now, it's a bit of a tussle in the market as to how to price this risk," he added. Risk-sensitive Antipodean currencies slipped, with Australian dollar down 0.09% versus the greenback at $0.675, while the kiwi fell 0.23% to $0.614.

☆ BOJ inflation target to be scrutinised at government forum
▼ + stars: | 2022-11-14 | by ( ) www.reuters.com time to read: +1 min

Nov 14 (Reuters) - A government-affiliated think tank will host a forum next month to discuss the Bank of Japan's 2% inflation target and the "challenges ahead", the organisation said on Monday. Participants include Columbia University professor Takatoshi Ito, who was a proponent of setting an inflation target when the BOJ had none until 2013, and University of Tokyo academic Tsutomu Watanabe, a former BOJ official known for his analyses on Japan's price trends. Three months later, Abe's hand-picked BOJ governor Haruhiko Kuroda deployed a massive asset-buying programme to meet his pledge of achieving 2% inflation in roughly two years. But stubbornly low inflation and a fragile economy forced the BOJ to maintain a massive stimulus until now, keeping Japan's central bank an outlier among global peers that have been tightening monetary policy to combat soaring inflation. With prolonged easing crushing bank profits and distorting the yield curve, some lawmakers have called for tweaking the joint statement and making the 2% inflation target a long-term goal with some room for flexibility.

☆ BOJ's Kuroda vows to continue monetary easing for now, focuses on wages
▼ + stars: | 2022-11-14 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +3 min

Kuroda said the job market is expected to tighten, particularly at service sector firms, many of which employ low-paid part timers and contract workers. The annual labour-management wage negotiations next spring will likely take into account both the tightening of the job market and rising inflation, he added. "We are at a stage where we will continue monetary easing to firmly back economic activity at present," Kuroda told a meeting with business leaders in Nagoya in central Japan. "The wages hold the key to see whether sustainable inflation take hold. In that sense, tightening of the labour market may be an encouraging signal to Governor Kuroda," Takeda said.

☆ Japanese Inflation Shows Signs of Easing, Kuroda Says
▼ + stars: | 2022-11-14 | by ( Megumi Fujikawa | ) www.wsj.com time to read: 1 min

Bank of Japan Gov. Haruhiko Kuroda said the BOJ was aiming to achieve its 2% inflation target. NAGOYA, Japan—There are some signs of local inflation easing, Bank of Japan Gov. Haruhiko Kuroda said, a development that helps reduce pressure on the bank to tighten its ultraloose monetary policy. But resource prices have already started falling,” Mr. Kuroda said at a news conference.

☆ BOJ Governor Kuroda vows to continue monetary easing for now
▼ + stars: | 2022-11-14 | by ( ) www.reuters.com time to read: 1 min

TOKYO, Nov 14 (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Monday the central bank would stick to monetary easing to support the economy for the time being so as to achieve sustainable and stable inflation accompanied by wage growth. "We are at a stage where we will continue monetary easing to firmly back economic activity at present," Kuroda told a meeting with business leaders in Nagoya in central Japan. (This story has been corrected to say Osaka instead of Nagoya in paragraph two)Reporting by Tetsushi KajimotoOur Standards: The Thomson Reuters Trust Principles.

☆ Japan's Oct wholesale prices rise 9.1% yr/yr
▼ + stars: | 2022-11-11 | by ( Leika Kihara | ) www.reuters.com time to read: +1 min

Slideshow ( 2 images )TOKYO (Reuters) -Japan’s wholesale prices rose 9.1% in October from a year earlier, slowing from the previous month’s record gain but remaining at high levels as the weak yen continued to inflate the cost of raw material imports for companies. The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, rose 9.1% in October from a year earlier, data showed on Friday. Petroleum and coal prices rose 2.6% in October from a year earlier, slowing from a 14.5% gain in September reflecting falling global fuel prices. But steel prices rose 22.4% and those for food by 6.9% as manufacturers continued to translate higher costs to automakers and retailers, the data showed. Rising fuel and raw material prices have weighed on Japan’s fragile economic recovery, as more companies pass on higher costs to households in a hit to still-weak consumption.

☆ BOJ's Kuroda lays out framework for future exit from easy policy
▼ + stars: | 2022-11-10 | by ( Leika Kihara | ) www.reuters.com time to read: +4 min

Kuroda brushed aside the chance of a near-term interest rate hike, stressing that the BOJ must continue to underpin a fragile economic recovery with loose monetary policy. But one major factor of debate will be the pace of increase in the BOJ's short-term policy rate, now set at -0.1%," Kuroda told parliament. "We discussed the need for the government and the BOJ to work closely together, and guide policy flexibly to structurally raise wages," said Kuroda. "It's extremely important for the BOJ to underpin the economy with ultra-loose monetary policy and ensure the necessary environment falls into place for companies to hike wages," Kuroda said. Kuroda said recent "rapid and one-sided" yen declines were undesirable as they make it difficult for firms to set business plans.

☆ BOJ's Kuroda lays out key debating points on future exit from easy policy
▼ + stars: | 2022-11-10 | by ( Leika Kihara | ) www.reuters.com time to read: +2 min

Kuroda brushed aside the chance of a near-term interest rate hike, stressing that the BOJ must continue to underpin a fragile economic recovery with loose monetary policy. But he said the BOJ can debate an exit strategy from its massive stimulus and head toward policy normalisation when achievement of its 2% inflation target, accompanied by wage increases, comes into sight. But one major factor of debate will be the pace of increase in the BOJ's short-term policy rate, now set at -0.1%," Kuroda told parliament. Kuroda said wages are likely to increase ahead as companies respond to intensifying labour shortages and recent rises in living costs, though the outlook remained highly uncertain. "It's extremely important for the BOJ to underpin the economy with ultra-loose monetary policy and ensure the necessary environment is falling into place for companies to hike wages," Kuroda said.

☆ Kuroda says he has no desire to be re-appointed BOJ governor
▼ + stars: | 2022-11-10 | by ( Leika Kihara | ) www.reuters.com time to read: +2 min

TOKYO, Nov 10 (Reuters) - Bank of Japan (BOJ) Governor Haruhiko Kuroda said on Thursday he had no desire to get re-appointed for another five-year term to head the central bank, after his current one ends in April next year. Personally, I have absolutely no desire to get re-appointed," Kuroda told parliament. The government nominates a candidate for BOJ governor, which needs parliament approval to take effect. The choice of next BOJ governor will be crucial to how quickly the central bank could phase out the current radical stimulus programme deployed by Kuroda. While there is no law prohibiting Kuroda from seeking a third five-year term, few had expected him to be reappointed when his current term ends.

☆ Japan manufacturers' mood down amid weak yen, global risks - Reuters Tankan
▼ + stars: | 2022-11-09 | by ( Tetsushi Kajimoto | Anant Chandak | ) www.reuters.com time to read: +3 min

The monthly poll, which tracks the closely watched tankan quarterly survey of the Bank of Japan (BOJ), found that manufacturers expected their business conditions to improve over the coming three months while service-sector respondents expected little change. Economists estimate the world's number-three economy slowed sharply in the third quarter as yen falls pushed living costs higher and as risk of global slowdown rose. The index is expected to rebound to plus 7 in February after declining for a third month in a row in November. The service-sector index rose five points to plus 20, the best reading since the plus 25 registered in October 2019 shortly before the outbreak of the pandemic, it showed. The index is expected to slip just one point to plus 19 over the coming three months.

[1/3] U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. Some analysts say that outcome could be positive for bonds and negative for the dollar if it leads to less fiscal stimulus. The euro touched $1.003 in Asia trade, its highest in nearly two weeks, before sliding to trade down a touch straddling the $1 level. The Japanese yen hit a one-week high of 146.35 per dollar. COVID POLICYAnother factor that has weighed on the dollar in recent days was speculation that China might relax aspects of its dynamic zero COVID policy.

☆ Dollar catches footing ahead of U.S. midterms
▼ + stars: | 2022-11-08 | by ( Tom Westbrook | ) www.reuters.com time to read: +3 min

[1/3] U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/IllustrationSINGAPORE, Nov 8 (Reuters) - The dollar steadied during Asia trade on Tuesday after some of the momentum ebbed out of bets on China's reopening, and as traders looked ahead to U.S. midterm elections. Some analysts say that outcome could be positive for bonds and negative for the dollar if it leads to less fiscal stimulus. Sterling , which surged on Monday, was 0.2% weaker at $1.1490, with focus there on fiscal update expected on Nov. 17. The Japanese yen hit a one-week high of 146.35 per dollar.

☆ BOJ debated impact of future exit from easy policy amid rising prices
▼ + stars: | 2022-11-08 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

While there is no need to immediately tweak monetary policy, the BOJ must pay attention to the side-effects of prolonged easing, according to another opinion quoted in the summary. The remarks highlight the emerging divergence between Kuroda's calls to keep monetary policy ultra-loose, and the opinions of some other board members, who are more open to the idea of debating a future exit from ultra-low interest rates. Some market players bet the BOJ will tweak its yield curve control policy when Kuroda's term ends in April next year. At the Oct. 27-28 meeting, the BOJ kept ultra-low rates and maintained its dovish guidance, cementing its status as an outlier among global central banks tightening monetary policy. Reporting by Leika Kihara; Editing by Jacqueline Wong, Christian Schmollinger and Ana Nicolaci da CostaOur Standards: The Thomson Reuters Trust Principles.

☆ China reopening hopes keep dollar on guard
▼ + stars: | 2022-11-08 | by ( Tom Westbrook | Tetsushi Kajimoto | ) www.reuters.com time to read: +3 min

[1/2] Banknotes of Chinese yuan and U.S. dollar are seen in this illustration picture taken September 29, 2022. It was firm at 7.2200 per dollar in offshore trade on Tuesday . The euro , linked via German exports to China's economy, regained parity on the dollar overnight and hovered at $1.0026. The New Zealand dollar climbed 0.2% to touch a seven-week high of $0.5951 in early Asia trade. But incremental adjustments have been enough to keep traders' hopes alive.

☆ Japan fin min warns of yen risks from Fed tightening
▼ + stars: | 2022-11-04 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

The yen has tumbled on the widening spread between U.S. and Japanese interest rates, with the Fed's aggressive interest rates hikes contrasting sharply with the Bank of Japan's massive monetary stimulus. The minister echoed Bank of Japan Governor Haruhiko Kuroda's recent caution about any spill-over effects from aggressive monetary policy tightening by the United States on Japan and other countries. The Fed raised interest rates by three-quarters of a percentage point this week, signalling that it may be near a turning point in its aggressive monetary policy tightening. The Japanese yen rose a marginal 0.07% to 148.155 per dollar on early trade on Friday, hovering below its 32-year low near 152 yen. Turning to currency intervention, Suzuki said Japan was not targeting any specific levels when intervening in the currency market to prop up the yen.

LONDON/TOKYO, Nov 2 (Reuters) - The dollar slipped on Wednesday as investors awaited a Federal Reserve policy decision amid speculation it might indicate a slowdown in future rate hikes. But for the December meeting, the futures market is split on the odds of a 75- or 50-bps increase. The real was 0.1% higher exchanging hands for 5.14 per dollar. YEN JUMPSThe yen , down a whopping 28% against the dollar this year, outperformed on Wednesday, with traders on alert for possible intervention around the Fed meeting. The BOJ also released minutes of its latest policy meeting, with a member saying the bank must be vigilant for an inflation overshoot, possibly caused by yen weakness.

LONDON/TOKYO, Nov 2 (Reuters) - The U.S. dollar slipped on Wednesday as investors awaited for the U.S. Federal Reserve's policy decision amid speculation it might indicate a slowdown in future rate hikes. But for the December meeting, the futures market is split on the odds of a 75- or 50-bps increase. It will be a difficult balance to strike for Powell," said Daria Parkhomenko, FX strategist at RBC Capital Markets. Against the weakening dollar, the euro and sterling edged up to $0.9889 and $1.1494, respectively. YEN JUMPSThe yen , down a whopping 28% against the U.S. dollar this year, outperformed, with traders on alert for possible intervention around the Fed meeting.

☆ Dollar sags as Fed decision looms; yen surges
▼ + stars: | 2022-11-02 | by ( Kevin Buckland | ) www.reuters.com time to read: +4 min

The yen outperformed, seeing a sudden burst of strength mid-morning Japan time, with traders on alert for possible intervention around the Fed meeting. On Wednesday, the Japanese currency jumped suddenly by about half a yen to 147.4 per dollar. The euro edged up 0.15% to $0.9888, but still close to the previous session's one-week low at $0.98535. Sterling rose 0.17% to $1.1505, but remained not far from Tuesday's one-week low of $1.14365. The Australian dollar was little changed at $0.63945, consolidating near a one-week low.

☆ BOJ's Kuroda flags tweak to ultra-low interest rates as future option
▼ + stars: | 2022-11-02 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

TOKYO, Nov 2 (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Wednesday a tweak to the central bank's yield curve control (YCC) policy could become a future option, but dismissed not now. "If the achievement of our 2% inflation target comes into sight, making yield curve control more flexible could become an option," Kuroda told parliament. The remark will likely keep alive market expectations of a tweak to the central bank's ultra-low interest rates when the dovish Kuroda's second, five-year term ends in April next year. The BOJ remains an outlier among a global wave of central banks tightening monetary policy as it focuses on reflating a fragile economy with aggressive stimulus. Kuroda has repeatedly stressed the bank's resolve to keep monetary policy ultra-loose.

Bank of Japan Governor Haruhiko Kuroda, however, reiterated the central bank's resolve to keep interest rates ultra-low, indicating that the yen's broad downtrend could continue. The finance minister repeated his warning that authorities are closely watching market moves and will not tolerate "excessive currency moves driven by speculative trading". In September, when Japan conducted its first yen-buying intervention since 1998, authorities immediately confirmed they had stepped in. Since the Oct. 21 intervention, the yen has been moving in a range below the psychologically important threshold of 150 yen versus the dollar. As such, it's necessary to support the economy with acccomodative monetary policy," Kuroda told parliament on Tuesday.

☆ Dollar steadies as Fed looms; yen fragile
▼ + stars: | 2022-10-31 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

The greenback moved broadly higher in Asia trade, particularly against the Japanese yen , rising more than 0.5% and pushing above the 148 yen level. Data on Friday showed that U.S. consumer spending rose more than expected in September, while underlying inflation pressures continued to bubble. The Fed is expected to deliver another 75 basis point (bp) rate hike after the conclusion of the FOMC meeting on Wednesday. Ahead of another central bank decision this week, the Australian dollar rose 0.1% to $0.6418. The offshore yuan was last down 0.4% at 7.2990 per dollar.

☆ Dollar up as data suggests Fed hawks will stay in control; yen fragile
▼ + stars: | 2022-10-31 | by ( Rae Wee | ) www.reuters.com time to read: +3 min

The greenback moved broadly higher in Asia trade, particularly against the Japanese yen , rising more than 0.5% and pushing above the 148 yen level. Data on Friday showed that U.S. consumer spending rose more than expected in September, while underlying inflation pressures continued to bubble. The Fed is expected to deliver another 75 basis point (bp) rate hike after the conclusion of this week's policy-setting meeting on Wednesday. Ahead of another central bank decision this week, the Australian dollar rose 0.09% to $0.6417. Along with a further 75 bp of rate hikes in the first half of 2023, we now have the RBA cash rate peaking at 3.85%."

☆ Dollar strengthens as Fed expected to stay hawkish; yen fragile
▼ + stars: | 2022-10-31 | by ( ) www.cnbc.com time to read: +3 min

Against the Japanese yen , the greenback was 0.44% higher at 148.08, particularly helped by the Bank of Japan's (BOJ) decision to keep ultra-low interest rates on Friday, and BOJ Governor Haruhiko Kuroda's still-dovish comments in the face of rising interest rates elsewhere. The dollar moved broadly higher in early Asia trade, and was up more than 0.2% against the New Zealand dollar and the pound. It recouped some of last week's losses, after having slid on hopes of a potential Fed change of tack. Data on Friday showed that U.S. consumer spending rose more than expected in September, while underlying inflation pressures continued to bubble. The Fed is expected to deliver another 75 basis point (bp) rate hike after this week's FOMC meeting, when policymakers announce their decision on Wednesday.

Investors face another (likely) bumper U.S. rate hike from the Fed later this week, and profit-taking and re-positioning as the new month begins could also burst the revival bubble. And not all equity markets are smiling - MSCI's Asia ex-Japan index is almost certain to close in the red for an unprecedented 10th month in a row. The divergence between U.S. and Asian markets is also reflected in the historic levels of dollar/Asia exchange rates, the widening gap between the U.S. and Chinese economic outlooks, and general investor confidence in the Fed versus Asian central banks' policy path. The PBOC is also struggling to keep its exchange rate depreciation in check. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

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