JPY is underperforming despite MoF engagement & hawkish BoJ Gov – Scotiabank

Japanese Yen (JPY) is weak, trading down 0.8% against the US Dollar (USD) and underperforming all of the G10 currencies in an environment of broad-based USD strength, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Ueda confirms a bias to further tightening

"Bond market developments remain front and center for the currency, as market participants speculate about the possibility of a reduction in government debt issuance following the finance ministry’s engagement with primary dealers."

"US-Japan spreads have remained relatively steady and top tier domestic data releases have been limited, leaving the focus squarely centered on headline risk including comments from BoJ Gov. Ueda who confirmed a bias to further tightening."