JPY is a relative performer on the day – Scotiabank

Japanese Yen (JPY) is soft, down marginally against the US Dollar (USD) but outperforming most of the G10 currencies, Scotiabank's Chief FX Strategist Shaun Osborne notes.

BoJ maintains focus on reducing JGB purchases and raising rates

"Fundamentals are supportive as market participants respond to BoJ Gov. Ueda’s latest speech in which he spoke of an intention to continue with a reduction in the pace of bond purchases and also maintained a bias to future rate hikes."

"The speech is important, heading into the June 17 policy decision as market participants had turned cautious following the recent turbulence in Japan’s government bond market. The JGB market has since stabilized, and Japan’s latest 10 year bond auction saw its highest demand in 14 months."

"Recent turbulence had followed a poor auction of 20 year bonds, and markets participants are now looking to the June 5 auction of 30 year debt."