During the local session the Yen broadly softened, posting declines against the majority of its most traded peers.
The Japanese Yen exchange rate was in the region of 94.8600 Yen to one US Dollar as of 10:35 am GMT
Last week the safe haven Asian currency posted its most significant five-day advance against the US Dollar for four years, but with speculation regarding US stimulus mounting and global stocks rising, demand for the Yen was limited.
The Federal Reserve is gathering tomorrow for its highly anticipated two-day policy meeting.
When the Fed last met, in the third week of May, Chairman Ben Bernanke intimated that further signs of US economic recovery (particularly in the labour sector) could prompt the central bank to begin paring back its present level of stimulus.
Since then several pieces of conflicting US data have been published, and the position the Fed will adopt has become more difficult to predict.
As one Tokyo bases currency strategist observed: ‘The changing prospects for US quantitative easing are causing great confusion. The market consensus is that Bernanke will clarify this week the difference between QE tapering and policy tightening and emphasise the point that monetary easing is still needed.’
The Yen weakened to 94.92 against the US Dollar
The Asian currency posted its largest losses against the Australian Dollar and South African Rand but slipped by at least 0.4 per cent against all of its other main rivals.
While the US Federal Open Market Committee meeting is the week’s piece of big economic news, Japanese data to watch out for this week includes tomorrow’s industrial production and machine tool orders figures, Wednesday’s merchandise trade balance total, Thursday’s measure of small business confidence and Bank of Japan Governor Haruhiko Kuroda’s speech at NASB on Friday.
Current Japanese Yen (JPY) Exchange Rates
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 94.8100 >
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 149.1350 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 126.6080 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 76.6374 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 91.1892 >
(Correct as of 10:35 GMT)