“In making those comments I was neither trying to assess the nominal
exchange rate (of the yen) nor forecast its future movement,” Kuroda
said today during a session of the upper house financial affairs
committee in an attempt to clarify controversial
remarks he had made last week about the local currency.The dollar was higher against the yen after his fresh comments.
Last Wednesday Kuroda said during a
parliamentary session that a measure of the yen’s relative value against
other currencies was unlikely to weaken further.
The greenback fell around 2 yen from almost 124.60 in some few hours.
Following his remark, the greenback surged to 123.81 before
weakening to 123.57. That compares with 123.37 yen late Monday in New
York.
Takuya Kanda, senior researcher at Gaitame.Com Research Institute said in a note that the greenback is being resilient in what may highlight the market's prognosis that a U.S. rate hike is coming closer.
The Australian dollar was weaker as central bank minutes from the most recent meeting held a dovish tone deciding to hold rates at a record low 2% at the meeting.
According to the minutes of June 2 board meeting released on Tuesday, the Reserve Bank of Australia sees monetary policy remaining accommodative especially as the Aussie has remained stronger than it was wanted.
"Having eased policy at the previous meeting members judged that it was appropriate to leave the cash rate unchanged and to assess information on economic and financial conditions as it becomes available," the RBA said.
"These data would inform the board's assessment of the state of the economy and the outlook and hence whether the current stance of policy would most effectively foster sustainable growth and inflation consistent with the target," the RBA said.
