Forexlive Asia-Pacific FX news wrap: Yen jumps as Takata hints at policy tightening

The Japanese yen surged on Friday after Bank of Japan Governor Haruhiko Kuroda hinted at the possibility of policy tightening. The comments came during a speech at the annual meeting of the Japan Society of Monetary Economics.

Kuroda's remarks fueled speculation that the central bank could start to unwind its ultra-loose monetary policy, which has been in place for years. The yen strengthened against the US dollar, with USD/JPY falling to a low of 109.75.

The news also had an impact on other Asian currencies, with the Australian dollar and the New Zealand dollar both falling against the yen. The Australian dollar dropped to a low of 84.60 yen, while the New Zealand dollar fell to 76.80 yen.

The euro also weakened against the yen, with EUR/JPY dropping to a low of 129.90. The British pound was the only major currency to hold its ground against the yen, with GBP/JPY trading at around 152.50.

Overall, the yen's strength was the main theme in the Asia-Pacific FX market on Friday, as traders reacted to Kuroda's comments and the prospect of tighter monetary policy in Japan.