Bank of Japan (BoJ) Governor Kazuo Ueda is back on the wires on Wednesday, commenting on the central bank’s exchange-traded funds (ETFs) buying to stabilize the market.
The fact BoJ stands ready to step in to buy ETF in times of market turbulence may be underpinning recent stock prices.
BoJ estimates show latent profits from its ETFs holdings stood around JPY24 trln as of August this year.
It may be possible to end BoJ’s ETF buying when there’s no concern over the risk of sharp rise in risk premia.
USD/JPY was last seen trading at 150.52, still up 0.14% on the day.