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The break above the key milestone heightens pressure for Tokyo to step into the currency market again to rein in the yen's relentless decline, which is adding to the country's already swelling import bill. "We cannot tolerate excessive, rapid currency market moves driven by speculative action," Suzuki said. The BOJ, for its part, ramped up efforts to defend its 0% bond yield cap earlier on Thursday with offers of emergency bond buying. The Ministry of Finance's dollar-selling, yen-buying intervention last month was the first time authorities had acted in the markets to prop up the yen since 1998. The yen's tumble below 150 against the dollar on Thursday took it to its weakest level since August 1990, keeping investors on high alert to the possibility of another Japanese intervention in the currency market.

The central bank's step underscores the dilemma Tokyo faces in trying to contain unwelcome yen falls, without resorting to interest rate hikes that could derail Japan's fragile recovery. Register now for FREE unlimited access to Reuters.com Register"Recent rapid and one-sided yen declines are undesirable. "We will continue to take appropriate steps against excess volatility, while watching currency market developments with a strong sense of urgency," he said. The government, which holds jurisdiction over currency policy, spent 2.8 trillion yen ($19 billion) in dollar-selling, yen-buying intervention last month when authorities acted in the markets to prop up the yen for the first time since 1998. The BOJ is widely expected to maintain its massive stimulus programme at its next two-day policy meeting ending Oct. 28.

☆ Bank of Japan to conduct emergency bond buying as yen teeters near 150
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +1 min

TOKYO, Oct 20 (Reuters) - Japan's central bank on Thursday said it would hold emergency bond-buying operations, offering to buy some $667 million in government debt, a move designed to put a floor under bond prices. The yen has been hammered this year by the widening difference between U.S. and Japanese interest rates. Register now for FREE unlimited access to Reuters.com RegisterBut the central bank has so far showed no sign of changing tack. Thursday's move showed the BOJ was continuing to buy bonds and keeping the YCC policy in place. The central bank said it would buy 100 billion yen ($667 million) of JGBs with maturities of 10-20 years and another 100 billion of bonds with maturities of 5-10 years.

We absolutely cannot tolerate excessively volatile moves driven by speculative trading," Suzuki told parliament on Thursday. "We will continue to take appropriate steps against excess volatility, while watching currency market developments with a strong sense of urgency," he said. Markets are on high alert on whether Japan will intervene in the currency market again as the yen falls near the key psychological barrier of 150 to the dollar. The government, which holds jurisdiction over currency policy, spent 2.8 trillion yen ($19 billion) in dollar-selling, yen-buying intervention last month when authorities acted in the markets to prop up the yen for the first time since 1998. The BOJ is widely expected to maintain its massive stimulus programme at its next two-day policy meeting ending in Oct. 28.

☆ The Japanese yen falls past the key level of 150 to the dollar, hitting a 32-year low as officials say they're ready to intervene
▼ + stars: | 2022-10-20 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

The Japanese yen slid past 150 against the dollar Thursday for the first time since 1990. The breaching of the key level ups pressure on Japan's officials to intervene to shore up the currency. The yen's decline has been driven by the difference in interest rate policy in Japan and the US. We will continue to watch currency moves meticulously and with a sense of urgency," Shunichi Suzuki said, per Reuters. "Little has changed for the yen with Japanese officials seemingly willing to let the currency weaken further by capping bond yields," Nick Cawley, senior strategist at IG's DailyFX, said.

British Prime Minister Liz Truss announces her resignation, as her husband Hugh O'Leary stands nearby, outside Number 10 Downing Street, London, Britain October 20, 2022. REUTERS/Henry NichollsOct 21 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeeverFarewell risk-on rally, we barely knew you. But it couldn't defy gravity - or more specifically, soaring U.S. bond yields and rate expectations - for long. If Japanese inflation figures on Friday come in hotter than expected, it will only intensify. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

The inflation data highlights the dilemma the Bank of Japan faces as it tries to underpin a weak economy by maintaining ultra-low interest rates, which in turn are fuelling an unwelcome slide in the yen that pushes up import costs. The increase in the nationwide core consumer price index (CPI), which excludes volatile fresh food but includes fuel costs, matched a median market forecast and followed a 2.8% rise in August. "The current price rises are driven mostly by rising import costs rather than strong demand. The data heightens the chance the BOJ will revise up its consumer inflation forecasts in new quarterly forecasts due at next week's policy meeting, analysts say. With Japan's inflation still modest compared with price rises seen in other major economies, the BOJ has pledged to keep interest rates super-low, remaining an outlier in a global wave of monetary policy tightening.

Its ultra-loose stance has accelerated Japanese investment flows abroad, helping to turn the yen's slump into one of historic proportions. Its net international investment position, the difference between the stock of assets it holds overseas and stock of Japanese assets held by foreigners, was $3.29 trillion at the end of June. International Monetary Fund figures show that of Japan's $9.96 trillion assets overseas, around $3.7 trillion is in equity-related investments, and some $5.7 trillion in debt instruments, including official reserves. Deutsche Bank strategist Alan Ruskin says a YCC change could have spillover effects that could last for a few weeks. Meanwhile, Japanese retail foreign currency deposits at domestic banks rose to 26.58 trillion yen ($182 billion) at the end of August, up 8.3% since the start of the year.

☆ Dollar gains with Treasury yields, sterling tumbles on hot inflation
▼ + stars: | 2022-10-19 | by ( Karen Brettell | ) www.reuters.com time to read: +4 min

British Pound Sterling and U.S. Dollar notes are seen in this June 22, 2017 illustration photo. Benchmark 10-year Treasury yields resumed their march higher as investors maintained expectations that the Federal Reserve will continue to aggressively raise rates to bring down soaring inflation, boosting demand for the U.S. currency. Register now for FREE unlimited access to Reuters.com RegisterThe U.S. central bank is expected to lift rates by another 75 basis points when it meets on November 1-2, with an additional 50 basis points or 75 basis points increase also likely in December. Japanese Finance Minister Shunichi Suzuki said on Wednesday that he was checking currency rates "meticulously" and with more frequency, local media reported. The BOJ remains an outlier among a global wave of central banks tightening monetary policy to combat soaring inflation, as it focuses on underpinning a fragile economy.

British Pound Sterling and U.S. Dollar notes are seen in this June 22, 2017 illustration photo. The U.S. dollar held at a 32-year peak against the yen and rose from a two-week trough against a basket of major peers, underpinned by expectations of aggressive U.S. Federal Reserve interest rate hikes. “Sterling edged lower against its peers after yet another upside surprise in the latest UK inflation data... “Following the budget fiasco, there is also a great deal of uncertainty as to the pace of upcoming Bank of England interest rate hikes," he added. read moreElsewhere, the dollar pushed as high as 149.48 yen for the first time since August 1990 in early London trading.

☆ FOREX Dollar holds near 32-year peak vs yen despite intervention risks; sterling licks wounds
▼ + stars: | 2022-10-19 | by ( Kevin Buckland | ) www.reuters.com time to read: +5 min

The dollar pushed as high as 149.395 yen overnight for the first time since August 1990, before last trading at 149.305 in the Asian session. read moreThe dollar index - which measures the currency against six peers including the yen, sterling and euro - added 0.2% to 112.19, after dropping to the lowest since Oct. 6 at 111.76 overnight. Meanwhile, sterling was little changed at $1.1318, licking its wounds after a 0.34% decline in the previous session. Economists in a Reuters poll predict another 75 basis-point rate hike from the European Central Bank on Thursday of next week. The currency last traded 0.08% higher at $0.56905, close to the previous session's two-week high of $0.5719.

☆ Dollar firm near 32-peak vs yen despite intervention risks; sterling treads water
▼ + stars: | 2022-10-19 | by ( Kevin Buckland | ) www.reuters.com time to read: +4 min

The euro hovered close to a two-week high. read moreThe dollar, which currently reigns as the safe-haven currency of choice, has sagged this week amid the bear rally in equities globally following some upbeat earnings. read moreThe euro was about flat at $0.9857, hanging just under Tuesday's high of $0.98755, a level last seen on Oct. 6. read moreThe New Zealand dollar remained elevated following Tuesday's blowout consumer price data, which raises expectations for continued aggressive tightening by the Reserve Bank. The currency last traded 0.19% higher at $0.5695, close to the previous session's two-week high of $0.5719.

Not only are Treasury yields across the curve the highest in years, the rapid pace of increase makes sporadic spillovers into other regions and markets almost inevitable. At its current level, the 10-year Treasury yield is up around 260 bps this year. With the yen at a fresh 32-year low near 150 per dollar, all eyes are on the BOJ. The offshore yuan is at a record low against the dollar and the onshore yuan is at its lowest since 2008. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Morning Bid: Earnings vs Rates
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +5 min

Oct 19 (Reuters) - A look at the day ahead in U.S. and global markets from Mike Dolan. Market tension is building between surprising positivity still coming from the unfolding corporate earnings season and the anxiety in interest rate markets and macro gloom. But earnings may be just a rearview mirror of the economy and the inflation and interest rate backdrop showed little sign of improvement across the western economies. U.S. 10- and 30-year bond yields were now both above 4% this week for the first time in 12 years. Oil prices steadied after Tuesday's slide amid reports U.S. President Joe Biden plans to release more of the Strategic Petroleum Reserve.

☆ Dollar holds near 32-peak versus yen despite intervention risks; sterling licks wounds
▼ + stars: | 2022-10-19 | by ( ) www.cnbc.com time to read: +4 min

The dollar pushed as high as 149.395 yen overnight for the first time since August 1990, before last trading at 149.305 in the Asian session. Meanwhile, sterling was little changed at $1.1318, licking its wounds after a 0.34% decline in the previous session. Economists in a Reuters poll predict another 75 basis-point rate hike from the European Central Bank on Thursday of next week. The New Zealand dollar remained elevated following Tuesday's blowout consumer price data, which raises expectations for continued aggressive tightening by the Reserve Bank. The currency last traded 0.08% higher at $0.56905, close to the previous session's two-week high of $0.5719.

"We are closely watching market moves with a high sense of urgency. Japan spent 2.8 trillion yen ($18.81 billion) in dollar-selling, yen-buying intervention last month when authorities acted in the markets to prop up the yen for the first time since 1998. The BOJ's previous estimate, released on Sept. 30, indicated a decline of 2.9 trillion yen as of the start of October. The gap of more than 1 trillion yen could reflect funds absorbed from excess reserves as a result of yen-buying, dollar-selling intervention. At Tuesday's parliamentary session, Prime Minister Fumio Kishida joined in warning that rapid, speculation-driven currency moves were problematic.

Suzuki, speaking in parliament, pointed to Japan's currency intervention last month when pressed by an opposition lawmaker on what a decisive response meant. "We are closely watching market moves with a high sense of urgency. We will make an appropriate response decisively to excessive moves," Suzuki said. Register now for FREE unlimited access to Reuters.com Register"We intervened in the currency market as a decisive measure (on September 22₎." At Tuesday's parliamentary session, Prime Minister Fumio Kishida joined in warning that rapid, speculation-driven currency moves were problematic.

Banknotes of Japanese yen are seen in this illustration picture taken September 23, 2022. Bank of Japan Governor Haruhiko Kuroda also repeated his usual line that stability in the foreign exchange market was "extremely important", characterising the yen's recent softening as sharp and one-sided. The comments came as the yen traded near a 32-year trough to the dollar at 149 yen, putting the major psychological barrier of 150 in focus. "When looking at the global financial and economic environment surrounding Japan, downside risks are building up rapidly," Adachi said in the speech. "When downside risks are so high, we should be cautious of shifting toward monetary tightening," he said, warning that heightening external headwinds risked tipping Japan back to deflation.

☆ Japan keeps up warnings over rapid yen moves after G20
▼ + stars: | 2022-10-17 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +3 min

Japan's vice minister of finance for international affairs, Masato Kanda, poses for a photograph during an interview with Reuters at the Finance Ministry in Tokyo, Japan January 31, 2022. The phrasing about "decisive steps" is at times deployed as a prelude to intervention, although the authorities' warnings on currency moves have not generally had consistent or long-lasting effects on the markets. On Monday, the yen was again hovering close to 149 per dollar, trading around 148.70. The yen's sharp moves also heighten uncertainty for firms in making business decisions. Japanese policymakers have said they won't seek to defend a certain yen level, and instead will focus on smoothing volatility.

☆ Japan PM to pick most appropriate person as next BOJ chief
▼ + stars: | 2022-10-17 | by ( ) www.reuters.com time to read: +1 min

Japan's Prime Minister Fumio Kishida delivers his policy speech during an extraordinary session at the lower house of parliament in Tokyo, Japan October 3, 2022. REUTERS/Issei Kato/File PhotoTOKYO, Oct 17 (Reuters) - Japanese Prime Minister Fumio Kishida said on Monday he would pick the most appropriate person to take up the governorship of the central bank next April, suggesting the decision could wait until just before the current governor's term ends on April 8. Kishida, speaking in parliament, mentioned no names and gave no specific detail on timing. Monetary policy foresight and coordination between the central bank and the government would be "important" factors in making the decision, Kishida told the lower house budget committee of parliament. Register now for FREE unlimited access to Reuters.com RegisterReporting by Tetsushi Kajimoto; Editing by Tom HogueOur Standards: The Thomson Reuters Trust Principles.

☆ Japan's top currency diplomat: will respond to excessive FX moves
▼ + stars: | 2022-10-17 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

Japan's vice minister of finance for international affairs, Masato Kanda, poses for a photograph during an interview with Reuters at the Finance Ministry in Tokyo, Japan January 31, 2022. REUTERS/Issei KatoTOKYO, Oct 17 (Reuters) - Japan will respond firmly to excessive currency fluctuations, its top currency diplomat Masato Kanda said, following the yen's sharp fall to a 32-year low to the dollar. "Each country would respond appropriately" to an agreement on foreign exchange market moves by the Group of Seven (G7) and G20 meetings last week, Kanda, vice finance minister for international affairs, told reporters at the Ministry of Finance. In addition, the yen's sharp falls heighten uncertainty for firms in making business decisions. Separately, Finance Minister Shunichi Suzuki said on Monday authorities would take decisive steps against excess currency moves driven by speculation, the Nikkei business daily reported.

☆ Sterling rebounds on UK fiscal policy U-turn; yen struggles
▼ + stars: | 2022-10-17 | by ( ) www.cnbc.com time to read: +3 min

In this photo illustration, British GDP £1 coins and bank notes are pictured in Bath, England. The news came hours after she sacked former finance minister Kwasi Kwarteng, with Jeremy Hunt replacing him. All eyes are now on how the UK government bond market will trade, after the Bank of England on Friday concluded its emergency gilt market support. The U.S. dollar index , which measures the greenback against a basket of currencies including the yen, firmed at 113.02. Elsewhere, the euro gained 0.26% to $0.9748, while the Australian and New Zealand dollars bounced mildly from recent losses.

☆ Analysis: G7 fails to reach intervention deal to ease pain of soaring dollar
▼ + stars: | 2022-10-16 | by ( Leika Kihara | ) www.reuters.com time to read: +7 min

Banknotes of Japanese yen and U.S. dollar are seen in this illustration picture taken September 23, 2022. With a strong push from Japan, finance leaders of the Group of Seven advanced economies included a phrase in a statement on Wednesday saying they will closely monitor "recent volatility" in markets. "Many countries saw the need for vigilance to the spill-over effect of global monetary tightening, and mentioned currency moves in that context. "I've said on many occasions that I think a market-determined value for the dollar is in America's interest. "It's impossible to reverse the yen's downtrend with solo intervention," said Daisaku Ueno, chief forex strategist at Mitsubishi UFJ Morgan Stanley Securities.

☆ Kuroda says BOJ will keep easy policy to hit price goal sustainably
▼ + stars: | 2022-10-15 | by ( ) www.reuters.com time to read: 1 min

WASHINGTON, Oct 15 (Reuters) - Bank of Japan Governor Haruhiko Kuroda said on Saturday the central bank will maintain its ultra-loose monetary policy to ensure its 2% inflation target will be hit in a sustainable and stable manner. "Since Japan's headline inflation is likely to fall below 2% next fiscal year, the BOJ will continuing with monetary easing," Kuroda said in a G30 seminar. Register now for FREE unlimited access to Reuters.com RegisterReporting by Leika Kihara; editing by Diane CraftOur Standards: The Thomson Reuters Trust Principles.

☆ Yen's recent fluctuations too rapid, one-sided, Bank of Japan's deputy governor says
▼ + stars: | 2022-10-15 | by ( Leika Kihara | ) www.reuters.com time to read: +3 min

Register now for FREE unlimited access to Reuters.com RegisterHe pointed to the Japanese leader's recent remarks to the Financial Times that the BOJ needed to maintain its ultra-loose policy until wages went higher. When asked about the yen's recent sharp declines, the BOJ deputy governor said: "When it comes to foreign exchange fluctuations right now, it's clearly too rapid and too one-sided." Wakatabe said the BOJ must maintain ultra-loose monetary policy because wage growth remains weak and inflation expectations, while rising, have yet to be firmly anchored around its 2% inflation target. That's when we are going to think about changing policy," Wakatabe said. The BOJ remains an outlier among the world's central banks, many of which are tightening monetary policy to combat soaring inflation, as it focuses on underpinning a fragile economic recovery.

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