The Japanese yen was heading toward a second-straight week of gains on Friday against the world's reserve currency after commentary by the Japanese finance minister downplayed the nation he serves cutting corporate taxes, Bloomberg reports.
One trading session after the yen lost value against the U.S. dollar, the monetary unit of the Pacific Rim nation climbed after Taro Aso said cutting taxes should be considered for the impact it will have in the medium and long term. The yen's monthly loss thus far this month is roughly 0.4 percent, which reduces the weekly climb to 0.6 percent.
"There have been local issues like Japan not going for a corporate tax and sterling rising on [Bank of England governor Mark] Carney's comments which are all driving the dollar lower," strategist Daragh Maher with HSBC told Reuters on Friday.
The Japanese yen gained about 0.5 percent against the dollar and roughly 0.4 percent against the common currency of the European Union.
The finance minister answered a report published in the Japanese media noting the government said it is pondering a reduction of the corporate tax rate next week when it puts together a stimulus package, according to Reuters.
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