Yen Falls as Traders Position for BOJ, Dollar Rises
The yen fell against all its Group-of-10 peers as investors positioned for a possible dovish Bank of Japan monetary policy decision on Wednesday. The dollar strengthened.
Japan’s currency dropped for a third day against the greenback as the BOJ began a two-day meeting at which policymakers are forecast to keep rates on hold amid concern over threats to global growth
The key focus at the gathering will be any signals from Governor Kazuo Ueda related to the timing of the next move, as well as any cautionary words over protectionist trade policies and their potential impact
“Some investors are expecting the upcoming BOJ meeting to produce a balanced-to-bearish outcome, dampening the yen,” said Shoki Omori, chief Japan desk strategist at Mizuho Securities Co. in Tokyo. “Meanwhile US retail sales data overnight was mixed but did suggest the US economy isn’t going to fall off a cliff, which is aiding the dollar”.
USD/JPY gained 0.4% to 149.78, extending its three-day advance to 1.4%
The BOJ will keep its policy rate at 0.5% Wednesday, according to all 61 economists surveyed by Bloomberg.
Bloomberg Dollar Spot Index rose 0.2%, while Treasury 10-year yields were little changed at 4.29%.
The euro edged lower before German lawmakers vote Tuesday on a debt-financed spending bill.
EUR/USD dropped 0.1% to 1.0911
GBP/USD fell 0.2% to 1.2971
Source : Bloomberg
