The Japanese Yen has weakened against the Euro for the first time in three days as European and Asian stocks made gains amidst weakening speculation that the US Federal Reserve will choose to reduce its monetary stimulus programme.
As a result the Japanese Yen depreciated beyond 100 per Dollar after climbing to its strongest level in three weeks in Monday’s trading session.
“Over the last few weeks the dollar has been trading more like a growth currency than a safe haven, so today’s data had people rethinking whether the Fed will taper its monthly bond purchases,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington. “Having said that, the Dollar was long overdue for a pullback, especially with long positioning in Dollar/Yen so high,” he said.
“The market is giving back some of its recent moves, with the yen weakening,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “The performance of the U.S. economy and Fed policy direction will be important for the Yen.”
The Bank of Tokyo has said that the Japanese currency is likely to weaken toward 110 per Dollar over the next year.
Major Japanese data releases this week
Japan Buying Foreign/Japanese Bonds – Wednesday 5th June
Japan Leading Index – Friday 7th June
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.3114
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 153.4421
The Euro/Japanese Yen Exchange Rate is currently in the region of: 131.1470
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 80.4336
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.0383
(Correct as of 10:05am GMT)
Comments are closed.