In an opening speech to BoJ's international conference on monetary policy in post-financial crisis era, Kuroda told that the recent financial crisis had made policy makers understand that they could pursue monetary easing even though policy rates are at near-zero level.
"It is possible to implement monetary easing even in a situation where the policy rate is around zero %," Kuroda told, adding that "After exhausting conventional policy measures by lowering the policy rate virtually to the zero lower bound, central banks in advanced economies have been underpinning economic recovery in the wake of the recent global financial crisis by using unconventional policy tools, such as asset purchases and forward guidance."
The economy cannot attain stability as a whole just by stabilizing prices and the real economy. Stabilization of the financial system also matters, Kuroda noted. Further, expectation management through communication with the market is critical to guiding the economy toward recovery, he added.
The yen appreciated to 171.24 against the Sterling, its strongest since
The yen climbed to a 5-day high of 113.55 against the Swiss franc, after having fallen to an 11-day low of 114.07 on Tuesday. If the yen extends gain, its next possible upside is seen around the 112.00 mark.
The yen that ended yesterday's trading at 138.98 against the euro edged up to 138.86. On the upside, the yen may target resistance at the 138.00 level.
The yen rose to a 2-day high of 86.96 against the kiwi, up from Tuesday's closing value of 87.27. The yen is poised to seek resistance at the 86.00 zone.
The yen gained to 94.28 against the aussie, following a weekly low of 94.54 hit yesterday. Further uptrend may lead the yen to a resistance around the 93.5 level.
Recovering from an early low of 93.96 against the loonie, the yen rose back to 93.83 and held steady thereafter. An extension of yen's rally may help it to find resistance at the 93.00 region.
Looking ahead, Swiss GDP data for the first quarter, German import price index for April and unemployment rate for May and Eurozone economic sentiment index for May are set for release in the European session.
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