The Japanese Yen has weakened for a second straight day against the US Dollar as investors and economists await the outcome of the Federal Reserve’s two day long policy meeting.
The market is hoping that the meeting will give some clearer indication as to what the Fed plans next for its asset purchasing programme. Speculation is mounting that the Central Bank will begin to scale it back.
The Japanese Yen has fallen against the majority of its most traded peers after the Bank of Japan said that its current-account balance is set to rise to a record amid its unprecedented monetary stimulus programme.
“Tapering of quantitative easing would mean the Fed has confidence in the US economy,” said Noriaki Murao, managing director of the marketing group at the Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “There’s a good chance we’ll go back to a weak-Yen, strong-Dollar market because of the difference in monetary policy between the U.S. and Japan.”
The unprecedented stimuli pumped into the Japanese economy has seen the Yen weaken drastically in recent months as the government and BOJ try to get the Japanese economy out its long period of stagnation and back to growth. The uncertainty over the Federal Reserve’s policies has however seen the Yen rise at times due to the volatility being created in the market.
Japan’s exports rose 6.5% in May from a year earlier marking the third consecutive month of increases and the fastest gain since exports rose an annual 10.0% in May 2012.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 95.2180 >
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 149.2670 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 127.4308 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 75.8873 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 90.2095 >
(Correct as of 10:10 am GMT)