CURRENCY VIEW

The yen strengthened against the dollar and the euro after Bank of Japan Governor Haruhiko Kuroda said a stable financial system is important as the central bank adds unprecedented stimulus to the economy.
Japan’s currency climbed against all but one of its 16 major peers as the nation’s Topix index of stocks rose a second day and benchmark 10-year bond yields climbed. Sweden’s krona advanced after a report showed the nation’s economy expanded more in the first quarter than analysts forecast. The Australian dollar fell to the weakest level versus its U.S. counterpart since October 2011 after the International Monetary Fund cut its growth forecast for China.
The Japanese currency appreciated 1.2 percent to 101.10 per dollar at 7:04 a.m. New York time. It was 0.4 percent stronger at 131.04 per euro. Europe’s shared currency gained 0.8 percent to $1.2960.
Japan’s Topix index gained 0.9 percent at the close of trading in Tokyo after climbing 1.2 percent yesterday.
The Bank of Japan in April pledged to double bond buying in an attempt to increase inflation to 2 percent and end 15 years of deflation. Board member Ryuzo Miyao said yesterday the central bank has taken all necessary steps for now.
Upward pressure on the yen may also be coming from an increase in Japanese bond yields, Sonja Marten, a currency strategist at DZ Bank AG in Frankfurt, wrote in a note to clients today.
The yield on Japan’s benchmark 10-year government bond rose three basis points today to 0.933 percent, the highest close since April 19, 2012.