The US dollar surged yesterday after the positive US data, but turned down today. Jump in to get a market wrap!
BOJ's Iwata tells there’s no need to purchase US Treasury debt
On Thursday, Bank of Japan Deputy Governor Kikuo Iwata told that there is no need to purchase American Treasury debt now. It’s because Japan’s major financial institution is capable of achieving sufficient monetary easing via purchases of Japanese government bonds.
Governor Kikuo Iwata told parliament that the Bank of Japan can easily achieve its 2% inflation objective and it’s currently looking for an eventual exit from its quantitative easing program without purchasing US Treasury debt.
BOJ official stressed that purchasing US Treasury debt would be undoubtedly interpreted as currency intervention, and it falls under the jurisdiction of the country’s finance ministry.
Iwata actually made the comments when asked by an opposition party lawmaker whether Japan’s major financial institution, having dried up market liquidity via its massive purchases of Japanese government bonds, would shift to other steps such as purchasing US Treasury debt.
Australian Private Capital Expenditure will be out on Thursday at 2:30 MT time!
Oil jumped to March high, stocks are heading to record highs, while the US dollar is on the back foot.
News geeks get ready for the chain of US reports, which starts at 15:30 MT time on November 25!