FOREX-Yen gains after Kuroda sticks to negative rate script

Mon Sep 26, 2016 7:41am EDT
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* Kuroda comments give no sign of near-term threats to yen

* 100 yen per dollar back in crosshairs

* Focus shifts to U.S. presidential debate

* Trump win might aid U.S. currency, hurt peso, Canadian dollar (Adds more comment, updates prices)

By Patrick Graham

LONDON, Sept 26 (Reuters) - The yen was holding strong on Monday in the face of another volley of promises from the Bank of Japan to do everything necessary to get inflation back on the rise, including cutting interest rates further into negative territory.

All eyes will be on the first U.S. presidential debate later, with the chances of a Donald Trump presidency, and the protectionist boost for the dollar many analysts think it might imply, moving to the front of investors' minds.

But with expectations for a rise in U.S. interest rates in December seen as unlikely to move swiftly higher, a number of major bank analysts believe the dollar could have peaked for now and may suffer, particularly against the yen, in coming weeks.

"The temptation is to say that the dollar should continue to weaken this week," said Sam Lynton-Brown, a currency strategist with BNP Paribas in London.   Continued...