Yen Erases Gains on Leading Indicators
The Japanese yen was rising today ahead of this week’s policy meeting as traders believed that the central bank will keep monetary policy unchanged. The currency lost gains after leading indicators fell more than was expected.
The Bank of Japan will announce its policy decision on August 8 and most economists think that no changes to monetary policy will be made. The TOPIX index of stocks fell 0.2 percent in Tokyo after dropping 1 percent yesterday, bolstering the yen.
The currency retreated after the government report that showed a drop of the leading indicators from 110.7 percent to 110.0 percent. Analysts have predicted a decrease to 108.0 percent. The yen has lost 8.4 percent this year so far, being one the worst performers among major currencies.
USD/JPY fell from 98.27 to 97.83 intraday, but bounce to 98.45 as of 6:16 GMT today. EUR/JPY traded at about 130.51 after dropping from 130.26 to 129.79. GBP/JPY was near 150.99 following the decline from 150.88 to 150.22.
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