Yen Pares Gain as BBC Says Kuroda Interview Conducted in June

Gallo: Definitely a Need to Do Something to Weaken Yen

The yen pared an advance against the dollar as it emerged that an interview in which Bank of Japan Governor Haruhiko Kuroda dismissed the idea of so-called helicopter money was conducted in June.

The Japanese currency earlier jumped more than 1 percent after, in comments broadcast on BBC Radio 4 on Thursday, Kuroda said there was no need or possibility for such a strategy. The interview was conducted on June 17, a BBC spokeswoman said.

Kuroda also repeated that he is determined to rid Japan of its deflationary mindset and that there are no significant limitations to further monetary easing if needed. The BOJ’s next policy decision is due on July 29.

“The market had to unwind part of that initial reaction,” said John Hardy, head of foreign-exchange strategy at Saxo Bank A/S in Hellerup, Denmark. “If it was something that he said very recently, it would be maybe a sign that he disapproves of the latest market action. Whereas if it’s a couple of weeks old, it’s not a direct communication aimed at what the market is doing. It’s just a general statement.”

The yen was 0.6 percent higher at 106.24 per dollar as of 12:38 p.m. London time, after earlier jumping as much as 1.4 percent.

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