With the two-day meeting of the Federal Reserve Open Market Committee beginning in just a few hours, the Yen strengthened against a broadly-softening US Dollar.
Given the recent stream of concerning economic data coming out of the US, the FOMC is largely expected to maintain its current bond buying programme, and may even hint at extending easing further.
The Japanese Yen exchange rate was in the region of 97.5100 Yen to one US Dollar as of 09:50 am GMT
Speculation surrounding the gathering lent support to higher risk assets and drove down the Dollar, allowing the Yen to strengthen to 97.4500.
As one currency analyst noted: ‘The disinflationary tendencies that are building into the US and the risk that the debate shifts to expanding rather than tapering QE has conspired to keep the US under pressure.’
Conversely, strategist Stan Shamu stated: ‘The Fed will probably be happy to maintain the current rate of asset purchases and not change the language because of the recent soft patch in the data. We’re seeing a little weakness in the Dollar.’
The Yen’s advance against the ‘Greenback’ was aided by a worse-than-forecast manufacturing gauge for the US Midwest, although gains were limited due to positive US consumer confidence and housing figures.
As the European session opened the Yen declined against modestly against a bullish Euro. Although the common currency sustained losses yesterday after unemployment in the Eurozone reached 12.1 per cent (a record high) it later experienced a rebound as investors bet that recent data will spur the European Central Bank into altering policy in order to boost the currency bloc’s economy.
Following the gains recorded during local trade the Yen’s monthly decline against the US Dollar has now been trimmed to 3.3 per cent.
If the FOMC intimates that an expansion of quantitative easing could be on the horizon, the Yen could continue to strengthen against the US Dollar.
Current Japanese Yen (JPY) Exchange Rates
< Down > Up
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.5100 <
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 151.5310 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 128.3190 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 83.4966 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.9830 <
(Correct as if 09:50 am GMT)
Comments are closed.