Dollar on the front foot after robust U.S. jobs data, yen falters
The dollar extended its rally on Monday after a strong U.S. jobs report suggested the Federal Reserve could stay hawkish for longer, while the yen was hit by news the Bank of Japan’s Deputy Governor Masayoshi Amamiya was being sounded out to be the next governor.
The Nikkei newspaper reported, citing anonymous government and ruling party sources, that Prime Minister Fumio Kishida’s administration was in the final stages of deciding on current governor Haruhiko Kuroda’s successor along with two new deputy governors.
The yen weakened to a three-week low of 132.60 per dollar after the report, and was last fetching 132.35, down 0.88%.
Tapas Strickland, head of market economics at National Australia Bank, said Amamiya dovish policy credentials are raising uncertainty about BOJ’s eventual exit from its ultra-easy monetary stance.
The BOJ’s loose policy settings have attracted increasing criticism from many quarters, including opposition politicians and traders, for distorting market function.
“Amamiya has helped Kuroda since 2013 on monetary policies, and is considered the most dovish among the contenders, which is thrashing hopes that BOJ policy normalization could progress under the new chief,” Saxo Markets strategists said.
This report’s information was first seen on Zawya.com; to read more, click this link.
You must be logged in to post a comment.