The Japanese yen on Thursday climbed against the world's reserve currency, spurred higher after high-level government officials said a Wednesday newspaper report indicating Japan is moving toward corporate tax cuts is off the mark, Reuters reports.
Taro Aso, minister of finance for the nation hosting the globe's third-largest economy, and the top spokesman for the government of the Pacific Rim nation said the report in Nikkei newspaper was not correct. Japanese stocks were losing value as the country's currency advanced.
"The market seems nervous on prospects for Japan's tax policy," fixed-income business department manager Tsutomu Soma with Rakuten Securities Inc. in Tokyo told Bloomberg on Thursday. "Stocks declined on comments that Japan will not cut corporate tax, boosting yen buying."
The yen's softer performance against the U.S. dollar is linked with the prospect of Japan preparing to challenge deflation. Aso said that efforts to pull down corporate taxes will not behoove the drive to confront deflation.
The yen climbed against the greenback yet only was slightly changed against the common currency of the European Union, according to Bloomberg.
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