Yen hovers near four-month trough

Yen rose modestly on Tuesday but remained tethered to a four-month low hit yesterday against the dollar, after remarks by Bank of Japan Governor Kuroda. 

USD/JPY inched down to 110.85 from the opening of 111.03, with a session-low at 110.85, and a high at 111.07. 

Bank of Japan Governor Haruhiko Kuroda stated earlier that the BoJ will take into consideration the negative side effects of the current massive stimulus program when directing policy decisions. 

In his Upper House testimony, Kuroda reiterated the central bank's efforts to offer strong monetary stimuli to achieve the coveted 2% inflation.

However, he admitted the negative effect such policies are having on financial institutions and banks, lending some credence to speculation of possible trimming-down of the ultra-easy policies and buoying yen.