Pound Sterling to Japanese Yen (GBP/JPY) Exchange Rate – Yen close to two-week low

Pound to Japanese Yen exchange rate chart

The Japanese Yen is close to a two-week low against the Pound after a better than expected unemployment figure bolstered the UK currency.

Earlier in the session the Yen was little moved against its major peers after the Bank of Japan refrained from increasing its unprecedented monetary easing programme after rising inflation signalled that the Banks plan to end 15 years of declining prices was beginning to pay off.

“Prices have been moving in line with our forecast. If upside or downside risks don’t materialize, we’ll continue with current policy,” said Bank of Japan Governor Haruhiko Kuroda.

Speculation as to whether the BOJ will announce further stimulus measures are increasing as the April sales-tax bump draws nearer. The number of economists predicting a rise between April and June fell however from 56% to 33%, instead many are now expecting that the Bank will add to its easing after July.

The Pound jumped against the Yen and the majority of its other peers, pushing beyond a one-year high against the Euro and US Dollar.

According to the Office for National Statistics the UK’s jobless rate fell from 7.4% to 7.1% in November, beating economist forecasts for a figure of 7.3%. Upon hearing the news the Pound lurched higher as investors increased their bets that the Bank of England will review its monetary policy. Unemployment declined by 167,000 to 2.32 million in the three months through November compared with the previous figure. The decline is the biggest drop recorded since October 1997 and is the second largest fall since records began in 1971.