Published: Wed, February 01, 2017
Markets | By Erika Turner

US Immigration Worries, BOJ, Weigh on Japan

US Immigration Worries, BOJ, Weigh on Japan

"As Bank of Japan Governor (Haruhiko) Kuroda has said repeatedly, Japan's monetary policy aims to achieve the domestic goal of ending deflation".

"It's not true at all", Chief Cabinet Secretary Yoshihide Suga said of the new president's criticism. He added that there was no change to its stance that it would respond appropriately against "one-sided" currency moves.

Japan's top government spokesman told reporters it was "absolutely not the case" Tokyo was devaluing the yen to gain an unfair trade advantage.

"(Trump) is doing more than enough to create uncertainty and turmoil and with uncertainty and turmoil you usually see a flight away from the assets of where that turmoil is coming from", said Richard Scalone, co-head of foreign exchange at TJM Brokerage in Chicago, in reference to the weaker dollar. "They play the money market, they play the devaluation market and we sit there like a bunch of dummies", he said in a meeting with pharmaceutical company executives. The dollar traded around the 113 yen line in Tokyo.

The remarks prompted the USA dollar to fall to an about two-month low of 112.08 yen before recovering close to 113 yen in late Tuesday trading in NY.

Wynn Resorts, Limited (WYNN) Earns "Market Perform" Rating from Wells Fargo & Company
Following the completion of the transaction, the director now owns 54,510 shares of the company's stock, valued at $4,748,911.20. When calculating EPS estimates for the current year from sell-side analysts, the Price to current year EPS stands at 23.90%.

New US President Donald Trump accused China of manipulating its currency exchange rates to undercut the US dollar and boost its exports throughout his election campaign. "We are not manipulating them", Masatsugu Asakawa, vice finance minister for worldwide affairs, told reporters on Wednesday.

Japan insists it is not trying to drive the yen lower; it has not intervened in the currency market since 2011.

Trump's election in November has boosted hopes for United States economic growth and lifted the dollar against the yen, seen as a boon to Japanese exporters. "Japan's monetary policies are for the domestic objective of escaping from deflation".

The president is likely to raise the issue of the massive USA trade deficit with Japan when he meets Prime Minister Shinzo Abe at the White House on February 10.

Trump said in an interview with the Wall Street Journal earlier this month that he thought the dollar was too strong and "it's killing us".

Like this: