Yen stronger after some on BoJ board question bond buying pace

The Japanese yen showed little reaction to January central bank board minutes released Monday that questioned the pace of government bond buying, holding at weaker levels seen at the start of the day.

Some Bank of Japan board members said the pace of massive Japanese government bond buying may need to stop before reaching a 2% sustained inflation goal, according to minutes published of the January meeting on Monday.

Board members also said falling oil prices should be reflected in inflation expectations, but that the underlying trend of moving from a deflation mindset is progressing steadily

Last week, the euro pushed higher against the dollar and the yen on Friday after euro zone finance ministers agreed on a deal to extend Greece’s bailout by four months.

The euro zone approved the extension of Greece’s €240 billion bailout, removing concerns that the country would face a liquidity crunch when its current bailout agreement expired at the end of the month.

Earlier Friday, data showed that euro zone private sector activity expanded at the fastest pace in seven months in February, but firms continued cutting prices, underlining concerns over persistently low levels of inflation.

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