In Asian trade, the US Dollar remained broadly higher and is poised to record another gain for the week. The common currency Euro was under heavy pressure, however, after Mario Draghi, president of the European Central Bank, left markets uncertain as to the timing of tapering of quantitative easing. Mr. Draghi said that the ECB is still awaiting an expected rise to the target inflation but that that rise is likely only with an ultra-loose policy. Presently, the ECB’s asset purchasing program is around €1.7 trillion. Analysts expect that there will be further discussion at the ECB’s next meeting in December when more comprehensive forecasts for growth and inflation will be produced.
As reported at 10:05 am (JST) in Tokyo, the USD/JPY pair was trading at 104.1460 Yen, up 0.18%. The EUR/JPY was up 0.07% at 113.69 Yen.
BOJ’s Kuroda Eyed
Earlier this week, the Bank of Japan’s Governor, Haruhiko Kuroda, said that the central bank would do whatever it deemed necessary to maintain the momentum toward the target inflation rate. Analysts point out that the tone of the Governor’s speech was softer than it has been in the past, suggesting that there is less urgency. Mr. Kuroda is expected to hold another press conference later today and market players will continue to closely scrutinize his language.