The Japanese Yen weakened against all of its most traded peers as speculation over further stimulus measures from the Bank of Japan caused some to say that yesterday’s Yen rise was too rapid.
The Yen advanced against the US Dollar yesterday, the Yens biggest jump in three years. On Wednesday however the Yen weakened against the ‘Greenback’ after government data showed a bigger-than-expected decline in Japanese factory orders. The weak data added to speculation that the BOJ may respond with additional stimulus measures until the Japanese economy improves.
“As long as the BOJ continues to execute what’s already announced, there’ll be weakening effects over the Yen,” said Hideki Shibata, a senior rates and currencies strategist at Tokai Tokyo Research Centre.
US Dollar to Japanese Yen (USD/JPY) exchange rate is currently in the region of 96.7560
The bigger-than-expected decline in factory orders makes it more likely that more stimulus measures will be implemented. According to the cabinet office new factory orders fell by 8.8% in April from March after rising for two months.
The BOJ yesterday refrained from adding stimulus or expanding its toolkit for tackling volatility in bonds. Governor Haruhiko Kuroda said after the Banks latest policy meeting that the central bank would discuss longer fund operations when needed to calm markets. The Bank also maintained interest rates at 0.10%.
The Yen could make further movement tomorrow when the minutes for the BOJ’s May meeting are released. The minutes will give the market a clearer sense as to whether they will opt for more monetary stimulus measures.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 96.7560
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 151.5537
The Euro/Japanese Yen Exchange Rate is currently in the region of: 128.7145
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 76.8772
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 92.0643
(Correct as of 10:20 am GMT)