With Japan’s central bank due to deliver its rate decision and policy announcement tomorrow, the Yen advanced on all of its most traded currency rivals (including the Pound and US Dollar) during the local session.
The Japanese Yen exchange rate was in the region of 149.1500 Yen to one British Pound as of 10:00 am GMT
The Asian asset broadly strengthened as positive Japanese economic news lowered the odds of the Bank of Japan opting to expand its unprecedented level of easing this year.
Recent signs of a pickup in Japan’s economy have resulted in the majority of economists forecasting that the BOJ will refrain from upping stimulus measures during the rest of 2013.
The GBP/JPY exchange rate hit a low of 149.1330
As one economist observed: ‘The BOJ is very reluctant to take any small steps. They are going to hold firm for a while unless something really big happens that forces them to change their price outlook.’
Last month BOJ Governor Haruhiko Kuroda kept policy unchanged, and he is expected to do the same following the central bank’s ongoing meeting.
However, while the domestic situation may be improving, global pressures will continue to negatively impact the Japanese economy in the months ahead.
Yesterday the International Monetary Fund lowered its global growth forecast to 3.1 per cent, and during the local session some disappointing trade data for China (Japan’s major trading partner) was released.
During the North American session further Yen fluctuations can be expected to occur as a result of Federal Reserve Chairman Ben Bernanke’s highly anticipated announcement regarding US bond-buying. The speech is scheduled to occur at 21:10 GMT.
Current Japanese Yen (JPY) Exchange Rates
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.1200 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 149.1500 <
The Euro/Japanese Yen Exchange Rate is currently in the region of: 128.1560 <
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 78.6057 <
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 92.0884 <
(Correct as of 10:00 GMT)