The Japanese Yen has strengthened for the first time in three days against the US Dollar and rose against the Euro after Japanese finance minister Taro Aso said that the government does not intend to buy foreign bonds in a bid to end deflation.
The Asian currency rose from its weakest level since May 2010 against the Dollar as Aso’s comments clashed with those made by Prime Minster Shinzo Abe. Addressing the Japanese parliament Abe said that purchasing foreign bonds was a possible option for the nation’s monetary policy.
“We don’t intend to buy foreign bonds,” Aso told reporters in Tokyo today, adding the government isn’t considering any immediate change to the law governing the BOJ. Aso later said that the yen’s unexpected decline had been a result of policies.
“The Aso comments are the reason we have seen the yen strengthening … But this is just a consolidation phase and the general trend for yen weakness will remain,” said Antje Praefcke, currency strategist at Commerzbank in Frankfurt.
Since last November the US Dollar has risen by about 20% and hit a 33-month high last week against the Yen. Despite the large declines in the Japanese currency its rate of weakening could be slowed or even reversed after Japanese officials began to tone down their calls for a weaker Yen to help boost exports. The change in tact came after Japans major trade partners complained that the nation risked triggering a global currency war as other nations follow Japans lead and begin to deliberately weaken their currencies in a bid to compete.
Current JPY exchange rates
These exchange rates were correct as of 10:30 am
The Japanese Yen to Pound Sterling exchange rate is currently trading at 0.0069
The Japanese Yen to US Dollar exchange rate is currently trading at 0.0106
The Japanese Yen to Euro exchange rate is currently trading at 0.0080
The Japanese Yen to Australian Dollar exchange rate is currently trading at 0.0103
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