Japanese Yen Flat Following Current Account Data

Japan current account balance ¥1653.1b in September

USDJPY relatively flat after the data crossed the wires

Data may have limited implications for BOJ policy bets

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USDJPY remained relatively flat after Japan’s Ministry of Finance released the country’s current account balance for September. The data topped estimates coming in at a surplus of 1653.1 billion Japanese Yen, see the table below. Today’s aggregate change in balance was the smallest in seven months. The pair’s timid response may have reflected the data’s limited implications for near-term Bank of Japan policy expectations.

Yesterday the Bank of Japan released its monetary policy statement. The central bank will continue purchasing government bonds at an annual pace of ¥80 trillion until it reaches the 2 percent inflation goal. Bank of Japan’s governor Haruhiko Kuroda continued to stress that he will not hesitate to adjust policy if needed. For the time being, the central bank appeared to give no hints towards additional stimulus in the near future.