The Yen climbs for a second day as investors predict that the Bank of Japan will leave policy unaltered.
The Japanese Yen exchange rate was in the region of 93.1400 Yen against the US Dollar as of 13:20 pm
For a second consecutive day the Japanese Yen was able to gain on its safe-haven counterpart the US Dollar.
The Yen was boosted by the mounting speculation surrounding the Bank of Japan’s imminent two-day policy meeting.
Despite Kikuo Iwata (a candidate for one of the central banks two deputy governor positions) stating to parliament that the BOJ has to increase its monetary base and purchase bonds with a longer maturity, industry experts are widely expecting that the BOJ policy board will hold off on upping stimulus.
These comments followed those made yesterday by Haruhiko Kuroda, the Japanese Prime Minister’s nominee for governor. Kuroda asserted that the central bank will bring 15 years of deflation to an end, no matter what steps need to be taken.
As currency strategist Lee Hardman states: ‘The Bank of Japan are not expected to do anything before leadership transition.’
The Yen gained on the majority of its main currency rivals, gaining an additional 0.2 per cent on the Euro after yesterday’s advance of 0.5 per cent despite positive retail sales data and better-than-forecast services PMI for the currency bloc. The Yen inched forward 0.2 per cent against the US Dollar.
The most influential pieces of Japanese data scheduled for release in the days ahead include Bankruptcies figures, the nation’s leading index for January, 4Q GDP and Japan’s trade balance figures.
The Bank of Japan will announce its rate decision on Thursday.
Yen movement could also be triggered by developments in the Eurozone, particularly any concerning the Italian government, and any issues relating to the series of automatic US spending cuts which began last Friday.
Current JPY Exchange Rates
The Japanese Yen to Pound Sterling (JPY/GBP) exchange rate is trading at 0.0071
The Pound Sterling to Japanese Yen (GBP/ JPY) exchange rate is trading at 141.2660
The Japanese Yen to Euro (JPY/EUR) exchange rate is trading at 0.0082
The Euro to Japanese Yen (EUR/ JPY) exchange rate is trading at 121.4580
The Japanese Yen to US Dollar (JPY/USD) exchange rate is trading at 0.0107
The US Dollar to Japanese Yen (USD/JPY) exchange rate is trading at 93.1400
These exchange rates were correct as of 13:20 pm
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