USD/JPY: BoJ minutes lift yen from lows

FXstreet.com (London) - The yen has made some recovery from yesterday’s lows on minutes from the Bank of Japan’s October meeting.

USD/JPY has depreciated 0.14 percent so far today to JPY101.4335.

The minutes indicated that central bank officials saw risks to the Japanese economic outlook. Board member Sayuri Shirai proposed to add to the BoJ’s semi-annual Outlook report the phase "attention should be paid to downside risks" given concerns over US economic activity and the Japanese domestic market.

Board member Takahide Kiuchi, who has been vociferous in pushing for the BOJ's 2 percent inflation target to more flexible, proposed the inclusion of the statement that prices are "likely to continue on a moderate rising trend."

Risk rally out of yen

The yen yesterday tested six-month lows on increased risk appetite following the signing of Iran’s accord on nuclear activities.

As part of the agreements concluded in Geneva yesterday morning, Iran will freeze or roll back its uranium enrichment programme to levels which would signal that Iran was not preparing to enrich to weapons grade.

In return, around USD7bn of international sanctions will be raised.

The risk on rally pushed USD/JPY to JPY101.88.

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