The Japanese Yen edged higher and moved away from a recently struck 4½ year trough versus its main rival the U.S. Dollar following comments made by the country’s economy minister who hinted at the government’s possible satisfaction wit the Yen’s current price level. The concern of the Japanese government has been two-fold; to halt the long enduring period of stagflation through a determined weakening of the currency yet to keep the Yen from deteriorating so much that the economy might be harmed; according to Akira Amari the current level of the Yen meets both of those terms. Despite the comments, currency strategists believe that the USD/JPY pair at least is likely to keep on deteriorating given the Bank of Japan’s inflation target pledge and the U.S. Dollar’s relative strength.
As reported at 12:36 p.m. (JST) in Tokyo, the USD/JPY pair was trading at 102.81 Yen, a drop of 0.4% but moving away from the earlier 1% skid when the pair hit 102.00 Yen; last Friday, the pair had hit a 4½ year peak of 103.32 Yen. The EUR/JPY pair was also moving away from 132.78 Yen, a 3½ year high, and was recently trading at 132.45 Yen. Market players will look ahead this week to the Bank of Japan’s 2-day policy meeting but expectations are for additional tweaking of current operations as opposed to any pull back of easing.
Yen Slips Lower on Government Comments
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.