The U.S. Dollar traded lower versus the Japanese Yen and moving well away from the recently struck 4½ year peak following comments made by two Federal Reserve officials who took the position that the Fed would likely maintain the status quo and not deviate from its current ultra loose policy despite some signs of economic improvement. Currency analysts expect the USD/JPY pair to trade in a relatively tight range as investors await the decision from the board of the Bank of Japan’s policy meeting as well as Congressional testimony from Fed chief Ben Bernanke but in the end expectations are that both central banks will maintain current monetary policy.
As reported at 11:08 a.m. (JST) in Tokyo, the USD/JPY pair was trading at 102.36 Yen, a loss of about 0.1% for the greenback and nearly 100 pips from Friday’s high of 103.32 Yen. The EUR/USD pair was trading higher at $1.2920, not far from the session high of $1.2937. The AUD/USD pair also edged higher to $0.9815, a gain of 0.1%, and moving off this week’s 11-month trough of $0.9711. The U.S. Dollar Index, the gauge of the greenback’s strength relative to its major peers, was 0.2% lower at 83.735 .DXY.
Dollar Broadly Lower on Status Quo 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.