Yen slips lower as Asian shares rise he dollar climbed back towards 105 against the yen as the Japanese currency slipped across the board ahead of a two-day Bank of Japan monetary policy meeting. Amid speculation mounted that Governor Kuroda will increase stimulus this year to counter a sales tax increase, the yen fell sharply against the dollar and euro. USD/JPY rose to 104.69 early on Tuesday, while EUR/JPY bounced back to 141.86. The dollar was also pushed higher by rising expectations that the Federal Reserve will announce more tapering in its FOMC meeting next week. Asian stocks rallied overnight, further cooling demand for safe haven assets such as the yen. A further rise in appetite for risk may spur more selling of the yen, together with more diverging policies from the two major central banks. Kiwi was supported so far today, after surprise acceleration in inflation which gave more scope for the Reserve Bank to tighten policy. NZD/USD jumped to 0.8339 last night, before retreating slightly to 0.8310 this morning. The Aussie on the other hand came back under pressure, giving back yesterday’s gains against the buck. AUD/USD is trading at 0.8798 and should re-test a multi-year low by 0.8757. Good day
Posted on: Tue, 21 Jan 2014 08:40:42 +0000
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