The yen headed for a second weekly gain as Bank of Japan Governor Haruhiko Kuroda refrained from making any assessment of the currency’s level after a policy meeting.
Kuroda declined to comment on specific exchange rates or the yen’s pace of change Friday, saying that it’s desirable for the currency to move in a stable manner. He triggered the steepest rally in the yen this year when he said on June 10 that the real effective exchange rate was “very” weak and unlikely to fall further. On Tuesday, the governor said his comments weren’t aimed at influencing the exchange rate and he wasn’t referring to the nominal rate.
“They are quite happy to keep things on hold and relatively stable for the currency,” said Derek Mumford, director at Rochford Capital, a currency risk-management company in Sydney. “There are consequences as far as taking liquidity out of the market.”
The yen traded at 123.09 per dollar at 8:58 a.m. in London from 122.96 in New York Thursday. It touched a 13-year low of 125.86 on June 5. The currency has strengthened 2.1 percent in the last two weeks.
Kuroda kept a pledge to expand the monetary base at an annual pace of 80 trillion yen ($651 billion), as forecast by all 35 economists in a Bloomberg survey.
The yen’s decline isn’t affecting the central bank’s policy flexibility, he said after the meeting.