The Japanese Yen has weakened for a second consecutive day against the US Dollar due to speculation that the US Federal Reserve will reduce its monetary stimulus measures whilst the Japanese Central Bank will choose to maintain its own bond-buying programme.
The Yen has declined by 0.6% against the US currency and the Pound during Monday’s session.
“You’re seeing Yen weakness because the Japanese are continuing to print, the US is talking about tapering, and Europe isn’t doing any printing whatsoever,” said Douglas Borthwick, a managing director and head of foreign exchange at Chapdelaine FX inNew York. “The market is thinking risk-on today, rather than risk-off.”
The Japanese Yen has weakened in recent months largely due to the economic policies of Japanese Prime Minister Shinzo Abe, known as Abenomics, which has rapidly expanded the supply of Yen. Since Abe became prime minister in November 2012, the South Korean won has strengthened nearly 20% against the Japanese Yen.
The Bank of Japan’s latest minutes for June are due to be released on Tuesday night and look set to be the next data release to affect the Yen. Current
Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 100.0851
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 151.1412
The Euro/Japanese Yen Exchange Rate is currently in the region of: 130.5700
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 77.8689
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 90.8192
(Correct as of 16:30 pm GMT)
Comments are closed.