FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that the FT has reported that the Finance Ministry in Japan is very worried about the potential impact on the currency markets according a senior official.
“The yen’s status as a safe haven has been weakened by the aggressive monetary easing undertaken by the BoJ. In addition, its safe haven appeal derived from Japan’s narrower current account surplus has also weakened. “
“It was reported overnight that Japan’s current account surplus in August proved much lower than expected driven by a narrowing in the income surplus and widening in the services trade deficit. In the twelve months to August, Japan’s current account surplus has totalled a cumulative JPY4.52 trillion equating to around 1.0% of GDP.”