Yen keeps distance from one-month low

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TOKYO: The yen kept some distance from a one-month low against the dollar on Tuesday after Bank of Japan Governor Haruhiko Kuroda held back from signalling further easing, acknowledging instead the costs of the BOJ´s aggressive stimulus.

The Australian dollar rose 0.5 percent after data on government spending and current account deficit pointed to solid economic growth last quarter, and as the Reserve Bank of Australia kept interest rates on hold as expected.

The U.S. dollar was trading at 103.67 yen, having fallen from Friday´s one-month high of 104.32.Though Kuroda signalled his readiness to expand an already massive stimulus programme in his speech on Monday, he did not provide any explicit hints on the chances of the BOJ aggressively easing policy at its next review on Sept.  20-21.In addition, many analysts noted that Kuroda admitted for the first time that his stimulus drive has its costs, even though he disputed the view that the BOJ´s stimulus is reaching its practical limit.

"For those who had been believing in a Kuroda who stresses only the benefits of easing, the speech would have been disappointing," said Makoto Noji, senior strategist at SMBC Nikko Securities.