FOREX-Dollar falls on comments from BOJ's Kuroda, U.S. debate uncertainty

Mon Sep 26, 2016 11:22am EDT
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* Kuroda comments give no sign of near-term threats to yen

* U.S. presidential debate at 9:00 p.m. ET/0100 GMT Tues

* Turkey downgrade, OPEC meeting hurt risk sentiment (Updates to open of U.S. trading, changes byline, dateline; previous LONDON)

By Sam Forgione

NEW YORK, Sept 26 (Reuters) - The dollar fell against the safe-haven yen on Monday after comments from a top Bank of Japan (BOJ) official reinforced views that the central bank was unable to weaken the yen, while an impending U.S. presidential debate stoked uncertainty.

BOJ Governor Haruhiko Kuroda said Monday the central bank stood ready to use every possible policy tool to achieve its 2 percent inflation target. He also said no big increase or decrease to its bond buying was expected for now.

The comments eased speculation that the BOJ was considering tapering asset purchases and supported a view that the BOJ was keeping in place a monetary policy that has only led the yen to strengthen.

The yen has gained more than 17 percent since the BOJ shocked markets in January by cutting rates below zero for the first time. The dollar was last down 0.5 percent against the yen at 100.47 yen after touching a session low of 100.34 yen.

"The BOJ is saying we'll continue on the current path," said Alfonso Esparza, senior currency strategist at Oanda in Toronto. "That means the yen at current levels will continue to strengthen."   Continued...