The Japanese Yen has risen to its highest level in seven-weeks against the US Dollar as the Bank of Japan begins its two day long policy meeting.
Speculation is rising that the Central Bank’s policy makers will choose to refrain from adding to its already massive monetary stimulus programme that has been responsible for the 11% decline seen in the value of the Yen.
As a result the Yen made gains against all of its most commonly traded counterparts as demand for safer assets increase and Asian stocks fell. Several big Japanese companies saw their stocks fall including Toyota which posted a 2.4% loss.
“We’ve been cautious on Dollar-Yen and been arguing to wait for dips. As the boost from the collapse of the Yen through the end of last year and the beginning of this year fades, that begins to pressure on the topside” said Robert Rennie, chief currency strategist at Westpac Banking Corp.
Economists are expecting the BOJ to keep interest rates on hold and to maintain its monetary base target at its two day meeting. Currently the Central Bank buys more than 7 trillion Yen of government bonds every month as part of its effort to increase annual inflation towards 2% in two years.
The Yen could make further gains tomorrow when the Ministry of Finance releases its latest current account data. Economists are expecting the data to show that Japan has a surplus of 400 billion Yen and that the nation’s trade deficit is likely to have narrowed to its smallest gap in a year as the weak currency continues to aid exporters.
Current Japanese Yen (JPY) Exchange Rates:
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 96.8986
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 148.3081
The Euro/Japanese Yen Exchange Rate is currently in the region of: 128.6423
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 76.5049
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 86.6341
(Correct as of 09:40 am GMT)
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