The yen strengthens, Japan government bond futures erase gains; Benetti says Bank of Japan slow to respond to inflation.

The Japanese yen strengthened against the US dollar, erasing earlier gains in Japanese government bond futures. Earlier, US Treasury Secretary Benson suggested that the Federal Reserve should cut interest rates by at least 150 basis points, while the Bank of Japan was slow to respond to inflation. The yen rose 0.4% against the dollar to 146.75.