The yen strengthened after some comments made by the Japanese Prime Minister’s economic adviser – Koichi Hamada.
Against the dollar, the yen rose to the highest in five days, pushing USD/JPY down to 119.65 while against the euro, the yen gained to a two-year high, pushing EUR/USD to a low of 126.20, the lowest since June 2013.
Hamada commented that the yen’s current exchange rate is “weak enough” as he spoke on BS Fuji television on Monday evening in Tokyo.
He said a level around 105 would be appropriate based on purchasing power parity. Also, Hamada added that the Bank of Japan does not need to force inflation to its 2 percent target.
The BoJ’s massive stimulus program in an effort to fight deflation in Japan has weakened the yen considerably. So if the Bank will hold off from more quantitative easing, this will help the Japanese currency stabilize and not fall much further.
Today the USD/JPY traded as low as 119.67 in Asian session trading.
Source:: Yen rises after Hamada comments