Asian currencies were in focus on Monday, with the Japanese yen rallying following remarks by the Bank of Japan governor that were seen as hawkish. The Chinese yuan appreciated after authorities there sent another forceful signal.
The yen extended gains to 1% against the greenback after BOJ Governor Kazuo Ueda told the Yomiuri newspaper there may be sufficient information by year-end to judge if wages will continue to rise, which is a key factor in deciding whether to pare back its super-easy policy. The yield on the government’s 10-year bond jumped to 0.7%, the highest since 2014. The BOJ said it will conduct funds-supplying operations on Sept. 14 to curb the gains in yields.