The Japanese Yen struck a new multi-year low against its main rival, the U.S. Dollar, during Tuesday’s Asian trading session on investors’ expectations that the Bank of Japan’s monetary policy is about to become even dovish than initially anticipated. One media outlet has reported that the government’s appointment as the new head of the BOJ has already hinted that additional easing measures will be put in place as soon as he takes over the position next week as opposed to after the April policy setting meeting. A release of February’s board meeting minutes has also surprised markets as it showed that existing members had already considering the purchase of longer-dated maturities than the current purchases of 5-year debt.
As reported at 1:55 p.m. (JST) in Tokyo, the USD/JPY pair was trading at 96.57 Yen, a 0.3% rise from late trading in New York; earlier in the session it had hit a session peak of 96.71 Yen, a 3½ high for the greenback. One analyst believes that the 100 Yen level could be hit sooner with the backing of a significantly more dovish central bank. The EUR/JPY pair was trading at 125.91 Yen, close to the 34-month peak struck last month when the pair hit 127.71 Yen.
Yen Lowers on Easing Expectations
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.
... Read more After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.