Contrary remarks from two of Japan's top leaders prompted the yen to climb against the world's reserve currency on Tuesday, Bloomberg reports.
Finance Minister Taro Aso said on Tuesday the nation is not planning to acquire international bonds one day after Prime Minister Shinzo Abe said that strategy remains an option. Since before being elected in December, Abe has emphasized the strategy of monetary easing by the Bank of Japan.
"Further easing from the BOJ is likely to come in the form of domestic instruments," foreign-exchange strategist Lee Hardman with Band of Tokyo- Mitsubishi UFJ Ltd. in London told Bloomberg on Tuesday. "We could be moving to a period of more stability for the yen after a sharp adjustment lower in the past three months."
Elected in the middle of December, Abe first noted monetary stimulus as a strategy on November 15, since when the yen has lost about 13 percent of its value against the U.S. dollar.
An additional factor that spurred the yen higher on Thursday was a lack of clarity about who Abe will tap as the new governor and two new deputy governors of the central bank, which he is obliged to do in the next two months.
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