By Leika Kihara and Takahiko Wada

TOKYO, Oct 12 (Reuters)Japan must swiftly revise laws to allow the central bank to issue a digital currency, a move that could provide a chance to reform the Bank of Japan’s existing mandates and enshrine its inflation target, a senior ruling party official said on Monday.

Kozo Yamamoto, head of the Liberal Democratic Party’s (LDP) council on financial affairs, said the BOJ risked being overtaken by private players who could launch their own digital currencies that could undermine the yen.

“If something too convenient pops up from the private sector, people might start to doubt whether they need yen as a currency unit. We must prevent this from happening,” he said. “This is fundamentally about protecting Japan’s currency sovereignty.

Yamamoto said he would prod the government and relevant agencies to speed up efforts to draft a revised BOJ law and other necessary legislation for issuing central bank digital currencies (CBDC).

However, more broadly, Yamamoto has been a vocal advocate of making changes to the BOJ law, which sets out the central bank’s mandates.

Revising the law to include digital currencies would also present a good opportunity to make other changes such as adding an inflation target and job creation to the mandates, much like the U.S. Federal Reserve, he added.

“The new law should also clarify that 2% inflation is the BOJ’s policy target,” he told Reuters.

The BOJ does currently set 2% as its inflation target, introduced in 2013. But the target is not stipulated under the BOJ law, which says only that its role is to ensure Japan’s price moves and financial system are stable.

Central banks globally have been reviewing their strategic goals, with the European Central Bank widely expected to follow in the footsteps

By Ritvik Carvalho

LONDON, Oct 8 (Reuters)The dollar and safe-haven Japanese yen nursed losses on Thursday, after revived hopes for U.S. fiscal stimulus improved investor sentiment, while the prospect of negative interest rates knocked the New Zealand dollar lower.

President Donald Trump and House Speaker Nancy Pelosi seem open to pursuing a stimulus package for the airline industry, even though Trump halted talks with Democrats for a bigger plan.

Investors also expect Joe Biden, if elected, would quickly spend money to stimulate growth.

That mood has lifted equity markets and sunk the yen JPY= to a three-week low of 106.11. The dollar struggled to recoup losses against other majors, excluding the kiwi.

Against a basket of currencies, the dollar was down 0.1% on the day. =USD

The euro EUR= edged up to $1.1782. The risk-sensitive Australian dollar AUD=D3 rose 0.3% to $0.7163. AUD/

“Overall, investors seem to be focusing more on the increasing odds of a Biden win and what that might imply for a stimulus package after the election,” said Marshall Gittler, head of investment research at BDSwiss.

“With that eventuality in mind, Trump’s decision to stop negotiations now is ultimately a risk-on move, as it increases the likelihood of a decisive Biden win.”

The New Zealand dollar NZD= was the biggest loser among G10 currencies, dropping as much as half a percent after central bank officials again hinted that negative interest rates are possible. It recovered in early deals in London to trade 0.1% higher to the dollar on the day.

Money-market pricing of an April 2021 rate cut increased after the remarks and the kiwi slipped to a three-week low against the Aussie AUDNZD=, before paring losses a little. It was last down 0.2% against the dollar at $0.6570.

“Today’s rhetoric from the

SINGAPORE – The safe-haven dollar and yen nursed losses on Thursday, after the revival of hopes for some U.S. spending improved investor sentiment and appetite for riskier currencies.

A flurry of late-Tuesday tweets from President Donald Trump, after he canceled talks with Democrats over coronavirus relief, suggested he was open to piecemeal spending measures.

That lifted equity markets and commodity currencies and sank the safe-haven yen to a three-week low of 106.11 per dollar overnight. The dollar was weaker on most other majors.PELOSI: ALL TRUMP WANTED IN CORONAVIRUS RELIEF NEGOTIATIONS WAS ‘TO SEND OUT A CHECK WITH HIS NAME ON IT’

The euro edged up 0.2% to $1.1767 and held there early in the Asia session. The risk-sensitive Australian dollar lifted off a one-week low and rose about 0.5% overnight to hold at $0.7137 in Asia. [AUD/]

With no fresh clues on stimulus, morning moves were slight and leaned in favor of the greenback. The New Zealand dollar slipped 0.4% after a central bank official said the bank was “actively working” on negative rates.

People wearing face masks walk past a bank’s electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Monday, Sept. 21, 2020. (Associated Press)

Top White House officials have played down the likelihood that anything gets passed, but House Speaker Nancy Pelosi is pursuing a standalone bill for aid to airlines.

“It looks like they still can’t agree on a bigger package,” said Commonwealth Bank of Australia currency analyst Joe Capurso. “If they could get an agreement on that, you’d get a bit more of a reaction and the U.S. dollar would fall.”

The overnight mood had been further supported by hints at even more

By Tom Westbrook

SINGAPORE, Oct 8 (Reuters)The safe-haven dollar and yen nursed losses on Thursday, after the revival of hopes for some U.S. spending improved investor sentiment and appetite for riskier currencies.

A flurry of late-Tuesday tweets from President Donald Trump, after he cancelled talks with Democrats over coronavirus relief, suggested he was open to piecemeal spending measures.

That lifted equity markets and commodity currencies and sank the safe-haven yen JPY= to a three-week low of 106.11 per dollar overnight. The dollar was weaker on most other majors.

The euro EUR= edged up 0.2% to $1.1767 and held there early in the Asia session. The risk-sensitive Australian dollar AUD=D3 lifted off a one-week low and rose about 0.5% overnight to hold at $0.7137 in Asia. AUD/

With no fresh clues on stimulus, morning moves were slight and leaned in favour of the greenback. The New Zealand dollar NZD=D3 slipped 0.4% after a central bank official said the bank was “actively working” on negative rates.

Top White House officials have played down the likelihood that anything gets passed, but House Speaker Nancy Pelosi is pursuing a standalone bill for aid to airlines.

“It looks like they still can’t agree on a bigger package,” said Commonwealth Bank of Australia currency analyst Joe Capurso. “If they could get an agreement on that, you’d get a bit more of a reaction and the U.S. dollar would fall.”

The overnight mood had been further supported by hints at even more easing from the U.S. Federal Reserve in the minutes of its September meeting.

Many participants had assumed the economy would be supported by fiscal spending, and some are open to further debate about the Fed’s bond buying programme.

“This nuance did not come across in Powell’s post-meeting press conference nor in recent

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) – The safe-haven yen and dollar rose on Friday after President Donald Trump tested positive for COVID-19, rattling investors just a month before November’s U.S. presidential election.

By afternoon trading, markets had calmed down, with the dollar and yen still up but moved in narrow ranges.

Data showing U.S. nonfarm payrolls rising less than expected in September, but with a drop in the unemployment rate, had little impact on currencies, as markets focused on Trump’s health.

Trump, who had played down the threat of the coronavirus pandemic for months, said he and his wife Melania had tested positive for COVID-19 and were going into quarantine, upending the race for the White House.

The news sparked some selling on Wall Street, while U.S. Treasury prices were lower after an initial rally.

The yen made its sharpest gain in more than a month to reach a one-week high of 104.95 against the dollar, then steadied. The greenback was last down 0.2% at 105.365 yen

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Implied volatility gauges for the yen rose to a four-week high of 7.62 vols

over the next month, signaling more choppy trading ahead.
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Mike Schumacher, senior macro strategist at Wells Fargo Securities in New York, said Trump’s COVID diagnosis added a layer of uncertainty to an already volatile election season, but the sharp market reaction from earlier in the global session has faded a bit.

“You can take one view and say that…this could limit the amount of political news over the next month,” said Schumacher. “Trump can’t really campaign and if Biden chooses to do a bit less also, you might get pretty limited news. That could reduce volatility.”

News that a $25 billion U.S. airlines deal was “imminent”, according to House Speaker Nancy Pelosi, also somewhat eased