Market News
Yen gets a boost from finance minister, pound wilts - REUTERS
Summary
- U.S.-China trade deal, tech sector earnings cloud currency path
- Tokyo CPI hotter than expected at 2.8>#/li###
- Euro nudges higher after ECB holds interest rates
- Pound under pressure as worries over UK finances grow
LONDON, Oct 31 (Reuters) - The yen rose on Friday after Japan's new finance minister said the government has been monitoring foreign exchange movements with a high sense of urgency, but was still heading for its weakest monthly performance against the dollar since July.
The Japanese currency has had a tumultuous week that included a brief, but powerful rally, after U.S. Treasury Secretary Scott Bessent took a few swipes at the Bank of Japan for not raising rates quickly enough, only for BOJ policymakers to then keep policy unchanged, as had been widely expected.
Finance Minister Satsuki Katayama said on Thursday she would not stand by remarks she made in March suggesting the yen's real value is closer to 120-130 per dollar, citing her current position as minister overseeing currency policy, which snuffed out some optimism among yen bulls.
TOKYO INFLATION COMPLICATES BOJ PICTURE
The yen was marginally stronger in Europe on Friday, leaving the dollar up just 0.1% at 154.28 yen , above a near nine-month low, after government data showed core consumer prices in Tokyo rose 2.8% in October from a year earlier.
The warmer-than-expected reading indicated inflation remains above target in the Japanese capital, complicating the Bank of Japan's path after it held interest rates steady on Thursday.
