Japanese Yen Lower on Easing Expectations
Japanese yen is lower today, sliding against major currencies as traders express their expectations for monetary easing by the Bank of Japan. Between US Treasury yields and possible BOJ easing, the yen is likely to continue losing ground to other currencies.
Bank of Japan officials stand ready to ease if needed, in order to help boost the economy. Monetary easing is a deliberate method of weakening the currency in an effort at economic stimulus. Many Forex traders expect that the BOJ will announce easing before the Federal Reserve does. As a result, the yen is falling against the US dollar.
Yen is also down against other major currencies, including the pound and the euro. With expectations that the yen still has room for easing, and assumptions that it will be a little while yet before the ECB or the BOE introduce new stimulus measures, the yen is likely to remain a little bit lower.
That’s as Japanese officials like it, however. A lower yen gives them an edge in trade. Being able to ease due to economic stimulus concerns is moreover something that sounds a little better to international ears than intervening for the express purpose of keeping the yen weak.
At 13:24 GMT USD/JPY is up to 79.1945 from the open at 78.9915. EUR/JPY is up to 97.6000 from the open at 97.0885. GBP/JPY is up to 124.5700 from the open at 123.8950.
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Earlier News About the Japanese Yen:
- Japanese Yen Drops on Expectations of Stimulus (2012-08-14)
- Yen Loses Ground as Japan's Economic Growth Slows (2012-08-13)
- Yen Advances as BoJ Refrains from Stimulus (2012-08-09)
- Japanese Yen Gains the Upper Hand as Traders Show Caution (2012-08-08)
- Yen Gains Even as Risk Appetite Persists on FX Market (2012-08-07)