The Japanese Yen fell to a three-week low against the US Dollar as speculation increased that Bank of Japan governor Haruhiko Kuroda will restate the case for more monetary easing at the three day long Federal Reserve conference in Jackson Hole.
“The markets will likely focus on any views Kuroda holds on the implementation on fiscal changes and how that could affect his outlook for monetary policy. There may be pressure on him to act to offset any growth drags arising from greater fiscal restraint. We expect the market to look to get back into long Dollar versus Yen positions before the Fed’s September policy meeting,” said Geoffrey YU, senior forex strategist at UBS AG.
Rising speculation that the Federal Reserve will begin tapering its own monetary easing policy next month has also dragged upon the Yen. Higher yields make Dollar denominated assets attractive with the gap between two-year US treasury yields and their Japanese counterparts at the highest level in two years. As a result more Japanese investors are likely to be drawn to the US treasuries which will boost the ‘Greenback’.
Against the Euro the Yen slid to a second weekly loss after European Central Bank Governing council member Ewald Nowotny said that the recent good economic news for the Eurozone has removed the need for the ECB to make further interest rate cuts.
So far this year the Yen has fallen by 9.1%, making it the worst performing developed market currency.
Current Japanese Yen (JPY) Exchange Rates:
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.9297
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 154.4885
The Euro/Japanese Yen Exchange Rate is currently in the region of: 132.1801
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 77.1451
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 89.0101
(Correct as of 11:30 am GMT)