The Japanese Yen has fallen for a second consecutive day as investors increased their bets that the US Federal Reserve will choose to taper its stimulus programme as the US economic recovery continues to pick up speed.
The US Dollar is trading close to its highest level since July ahead of the release of the Federal Reserve’s Beige Book later in the session. Economist have also rallied to the Dollar ahead of Thursdays latest payrolls data which is expected to show that up to 180,000 new jobs were created in August. The Fed said that any decision to scale back its monetary easing programme depends on whether the unemployment rate declines.
“The Dollar is more likely to rise in the medium to long term, should we see non farm payrolls increase by about 150,000 to 160,000 the likelihood of a September tapering of the Fed easing will remain intact” said Yujiro Goto a senior currency strategist at Nomura International Plc.
The Yen has also been softened by the decline in demand for safe haven assets after the likelihood of military action against Syria taking place this week faded. If the US Congress votes in favour of strikes next week then the Yen is likely to once more rise due to investors seeking a safe haven.
Current Japanese Yen (JPY) Exchange Rates:
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.6284 >
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 155.2564 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 131.1898 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 78.3836 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 91.0982 >
(Correct as of 10:55 am GMT)
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