Japan Banks Surge With Yields on Ueda Comments on Negative Rates

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Japanese financial firms rally after comments from Bank of Japan Governor Kazuo Ueda suggesting an end to negative interest rates is possible if policymakers become confident that prices and wages will keep going up sustainably.

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Yen jumps on Ueda's remarks; dollar tentative ahead of US inflation printThe yen strengthened on Monday as comments from Bank of Japan (BOJ) Governor Kazuo Ueda stoked hopes that Japan could soon herald a new era away from negative rates, while the dollar was on the back foot ahead of this week's U.S. inflation reading. The Japanese currency rose nearly 0.8% at one point to touch a session-high of 146.66 per dollar in early Asia trade, boosted by weekend comments from Ueda that the central bank could end its negative interest rate policy when achievement of its 2% inflation target is in sight. Ueda told the Yomiuri newspaper in an interview that the BOJ could have enough data by year-end to determine whether it can end negative rates.
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