The Yen broadly strengthened during Asian trade as investors turned to the safe-haven asset in the wake of disappointing manufacturing data for the US. The Yen was also boosted by the anticipation surrounding the Bank of Japan’s first policy meeting with Haruhiko Kuroda at the helm.
The Japanese Yen exchange rate was in the region of 93.0900 Yen to one US Dollar as of 10:34 am
The Yen, while advancing on all of its most traded currency rivals, climbed notably against the Euro on the expectation of the unemployment rate in the Eurozone reaching a record high. It is likely to continue trading higher against the European currency following the unemployment data’s release, as Eurostat’s report revealed the jobless rate in the 17-nation currency bloc holding at the record level of 12 per cent achieved the previous month.
After leaping by 1.1 per cent against the US Dollar the Yen traded in the region of 92.98 as European markets opened following the Easter break.
Some industry experts are forecasting that the Yen could continue to advance prior to the meeting of the Bank of Japan on the 3rd and 4th of April.
As currency strategist Greg Anderson remarked: ‘Obviously the big move today is in Yen. You can interpret that as the market backing off of their Yen shorts ahead of the BOJ. It wouldn’t shock me too much to see this continue, and you might even get to 92.50.’
New BOJ Governor Haruhiko Kuroda has already vowed to reach the central bank’s inflation target of 2 per cent within 2 years, pledging to take ‘all necessary actions’ to bring an end to deflation. On Thursday we will discover what steps Kuroda is willing to take in order to achieve these aims.
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