Japan’s Kato: BOJ'S new scheme should contribute to strengthening regional banks' capacity

“The Bank of Japan’s (BOJ) new scheme should contribute to strengthening regional banks' capacity, “Japanese Chief Cabinet Secretary Katsunobu Kato said while speaking at a regular news conference on Wednesday.

• BOJ unveils special deposit facility to ensure regional financial system stability

On talks with US President-elect Joe Biden, Kato said that the government is arranging to hold phone talks between PM Yoshihide Suga and Biden at an appropriate time.

Market reaction

USD/JPY shrugs-off the above comments, as the broad market sentiment dominates. The risk-on mood weighs on the safe-haven US dollar, dragging USD/JPY lower towards 105.00.

Although the uptick in the S&P 500 futures appears to cap the losses in the spot.