The Japanese Yen strengthened against most of its most traded peers and rose for a fourth consecutive days against the US Dollar after the Bank of Japan’s latest meeting showed that policy makers were worried that concern over monetary-easing plans could be disrupting the markets.
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 95.0083.
The largest bout of volatility seen in the currency market for a year sent the Yen higher as investors sought shelter in the safe haven currencies and demand for safer assets increased.
“What’s behind the strengthening in the yen is the BOJ’s failure to contain Japan’s bond yields, as well as the disappointing growth strategy,” said Hiroshi Yoshida, a senior portfolio manager in Tokyo at MassMutual Life Insurance Co. “I expect unwinding to continue on dollar-yen long positions,” he said. A long position is a bet an asset will rise.
According to the minutes of the Bank of Japan’s May meeting a policy maker suggested that the Bank should specify a two-year limit for its unprecedented monetary easing programme in order to prevent market volatility.
Dollar to Yen exchange rate has been volatile
Economists are predicting that the Yen will continue to make gains as long as the uncertainties over Central Bank monetary policies remain.
“Dollar/Yen has been volatile. Uncertainty over government and monetary policy in Japan and the US has raised volatility in financial markets. It’s possible for the Yen to strengthen beyond 94 per Dollar” said Junya Tanase, chief currency strategist at JPMorgan Chase & Co.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 95.0083
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 148.7316
The Euro/Japanese Yen Exchange Rate is currently in the region of: 126.6756
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 76.5638
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 91.2052
(Correct as of 09:45 am GMT)
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