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Japan’s yen hits 1-month low vs. dollar on report over new BOJ governor

6 February 2023, 19:39
Japan’s yen hits 1-month low vs. dollar on report over new BOJ governor

TOKYO. KAZINFORM - The yen hit a one-month low around the mid-132 range against the U.S. dollar on Monday after a report over the next Bank of Japan chief fueled speculation about continued monetary easing in the country, Kyodo reports.

The Nikkei index finished at around a two-month high, lifted by exporters on the weaker yen following the report early Monday saying that the government has approached BOJ deputy chief Masayoshi Amamiya as a possible successor to Governor Haruhiko Kuroda.

The yen lost further ground and hit near 132.60 against the dollar in Oceanian trading on Monday after the Japanese currency tumbled Friday as stronger-than-expected U.S. employment data spurred expectations of U.S. interest rates staying at a high level for a long period.

At 5 p.m., the dollar fetched 131.78-80 yen compared with 131.15-25 yen in New York and 128.59-62 yen in Tokyo at 5 p.m. Friday.

The euro was quoted at $1.0781-0782 and 142.08-12 yen against $1.0790-0800 and 141.60-70 yen in New York and $1.0899-0900 and 140.16-20 yen in Tokyo late Friday afternoon.

Amamiya, a career central bank official, has been instrumental in designing Japan's bold monetary easing program under Kuroda, whose term ends in April. The government is scheduled to present its nominee for the new BOJ governor to parliament this month.

«Mr. Amamiya, who played an important role in Governor Kuroda's monetary loosening policy, is seen as dovish,» stirring the view that he would stick to the stance pursued by the BOJ chief, said Takuya Kanda, a senior researcher at the Research Institute.

After hitting the one-month low in the early morning, the yen recouped some losses against the dollar.

«The market was taking a wait-and-see stance as the government has not officially decided on the successor,» Kanda said.

The yield on the benchmark 10-year Japanese government bond rose 0.005 percentage point from Friday's close to 0.490 percent, tracking a U.S. long-term interest rate rise last weekend.

The 225-issue Nikkei Stock Average ended up 184.19 points, or 0.67 percent, from Friday at 27,693.65, the highest since Dec. 15. The broader Topix index finished 8.96 points, or 0.45 percent, higher at 1,979.22.

Gainers included wholesale trade, mining, and marine transportation shares.

Among exporters, Nissan Motor rose 9.8 yen, or 2.1 percent, to 472.4 yen, while Honda Motor gained 60 yen, or 1.9 percent, to 3,258 yen. Hitachi Construction Machinery was up 71 yen, or 2.4 percent, to 3,005 yen.


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