Although the market experienced a slight adjustment on bets that the recent higher-risk currency surge may have been overdone, the Yen’s weakness persists.
The Japanese Yen exchange rate was in the region of 159.4830 Yen to one British Pound as of 13:00 am GMT
The Asian asset lost ground against Sterling, hit a 3 ½ year low against the Euro and approached the psychological 100 Yen per Dollar level against the ‘Greenback’.
While the safe-haven Yen continues to be adversely affected by the Federal Reserve’s decision to keep bond buying at 85 billion Dollars, it was also knocked as a central bank official intimated that the pressure to extend stimulus may increase in the weeks ahead.
The official in question, Bank of Japan board member Takahide Kiuchi, asserted; ‘I can’t deny the possibility that the Bank of Japan will be influenced by external factors such as market expectations and will be forced to respond in such a way.’
The GBP/JPY exchange rate hit a high of 159.4830
When the BOJ instated an unprecedented level of stimulus back in April the Yen posted widespread and significant declines against its peers. If the central bank does indeed decide to expand easing in order to support Japan’s economic recovery additional Yen losses are likely.
In a volatile week for the currency market the Yen approached the weekend having posted overnight declines of 1.6 per cent against the Euro and 1.5 per cent against the US Dollar.
News that the UK’s budget deficit narrowed in April was responsible for modest additional GBP/JPY gains.
Japanese data to watch out for next week includes a small business confidence index, machine tool orders figures and the national consumer price index.
Current Japanese Yen (JPY) Exchange Rates:
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The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.3600 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 159.4830 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 134.5980 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 83.3564 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 93.7661 <
(Correct as of 13:45 GMT)