Uncertainty and worry over escalating trade tensions sent the safe haven Japanese Yen broadly higher during Asian trade. Also providing a lift to the Yen is news that the Japanese central bank is being pressured to bring to a close its lengthy period of accommodative monetary policy. That pressure is coming after the release of the latest policy meeting minutes; one internal member of the Bank of Japan is pushing for a wider band for long-term yields.
As reported at 10:36 am (JST) in Tokyo, the USD/JPY was trading at 110.804 Yen, down 0.09% and off the session trough of 110.756 Yen while the peak is at 110.945 Yen. The EUR/JPY is trading at 128.571 Yen, down 0.19%; the pair has ranged from 128.4920 Yen to 128.800 Yen.
Kiwi Dollar Down on Rate Outlook
In New Zealand, the Reserve Bank of New Zealand announced no change to the current benchmark lending rate. While that decision was largely expected, the decidedly dovish comments contained in the RBNZ statement over the future of interest rates sent the Kiwi Dollar lower. Adrian Orr, the RBNZ Governor said that the current low rate environment would be sustained through 2020; that news took markets by surprise. The NZD/USD was trading at $0.6672, down 0.5671% but off the session trough of $0.66644.