The Japanese yen rose amid calls for a shift in monetary policy: The Japanese yen rose to $149.7,
amid calls to begin discussing ending monetary policy and exiting negative monetary policy.

Content
The Japanese yen rose amid calls for a shift in monetary policy
Gold awaits favourable inflation data from the US Federal Reserve

The Japanese yen rose amid calls for a shift in monetary policy

The Japanese yen rose above 149.7 to the dollar, moving away from its lowest levels in more than three months,
as Bank of Japan board member Hajime Takata called on the central bank
to begin discussing details of a possible end to ultra-stimulus monetary policy,
including an exit from negative monetary policy.
“It is necessary to consider an intelligent and flexible response,
including how to exit or change the current highly accommodative monetary policy,” he said.
Masato Kanda, Japan’s chief currency diplomat,
said on the sidelines of the G20 finance leaders’ meeting in Brazil that
the government is monitoring currency movements and stands ready to respond.
The yen has been under tremendous pressure this year as the Bank of Japan stuck
to its highly stimulative policy while other major central banks remained committed to a tightening policy.

Gold awaits favourable inflation data from the US Federal Reserve

The price of gold settled around $2,035 an ounce on Thursday
and remained volatile throughout the week as investors prepared
for a key reading on inflation in the United States that could guide interest rate expectations.
Thursday’s report on the US Personal Consumption Expenditures Price Index,
the Fed’s preferred measure of inflation, is expected to rise 0.4% in January after a 0.2% increase in December.
If personal consumption expenditures contract stronger than expected,
it will reduce bets on a further cut in the federal interest rate in the first half,
which may put pressure on gold.
In Japan, central bank board member Hajime Takata called on the Bank of Japan
to begin discussing details of the potential end of highly stimulative monetary policy,
including exiting negative interest rates and controlling bond yields.

The Japanese yen rose amid calls for a shift in monetary policy

The Japanese yen rose amid calls for a shift in monetary policy

Related Topics