Earlier today we received news from Japan, where the central bank’s governor Haruhiko Kuroda expressed the opinion that Japan’s economy is in a better condition than expected, with projections about increases in inflation.
This further fueled the already existing speculation among traders that Japan will decrease its massive stimulus program. If economic reports are positive and there is indeed a growth in inflation, then the Bank of Japan will have solid grounds for switching to a less dovish approach to monetary policy.
This news has managed to boost the Japanese yen, which strengthened to a four-month maximum against the American dollar, near the mark of 110.60.
Kuroda’s statement was not an isolated incident. Instead, it is a part of a recent trend among Japanese officials who have made statements regarding the improving economic climate of the country. The Bank of Japan already decreased its bond-buying activity, which was a good sign in itself.
