The yen rallied from an almost six-month low after Bank of Japan minutes showed one board member saw risks for prices are tilted to the downside, adding to concern policy makers may struggle to boost inflation to 2 percent.
The yen was supported after Takehiro Sato’s comments were published in minutes of the BOJ’s October meeting. The euro strengthened after China’s central bank governor said the currency is important to the nation’s reserve management. European Central Bank Executive Board member Joerg Asmussen, who has said negative deposit rates are a possible tool, will speak today. Australia’s dollar rose after Reserve Bank Deputy Governor Philip Lowe said the bar for intervention is high.
BOJ officials are “somewhat tentative and cautious,” said Callum Henderson, the global head of currency research at Standard Chartered Plc in Singapore. “Our expectation is for further gradual gains in dollar-yen, but it’ll be a slow grind rather than a dramatic move higher.”
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