Bank of Japan: no easing is needed
US dollar is steady on Wednesday after it declined on Tuesday.
EUR/USD rose to resistance in the 1.0965 area. The euro gained as the bad mood caused by the Greek situation gradually dissolves.
USD/JPY slid to 123.55. The Bank of Japan Governor Haruhiko Kuroda said that he expected inflation to meet the central bank’s 2% target and dismissed the idea of more quantitative easing.
Gold price stabilized above $1090 supporting commodity currencies like Australian and New Zealand’s dollars. AUD/USD recovered to 0.7430 after a dip to 0.7370. Australia’s inflation figures released today allow the Reserve Bank of Australia to continue cutting interest rates if needed. At the same time, the RBA Governor Glenn Stevens said that too much easing could lead to longer-term dangers through risk-taking and excessive borrowing.