The Japanese Yen remained closed to a 3-month peak versus the greenback and the common currency Euro as speculation wanes that the Bank of Japan is likely to provide further stimulus. A decline in treasury yields in U.S. and Eurozone bonds also helped to lift the Yen. The Yen’s appreciation comes after the Bank of Japan maintained an upbeat outlook for Japan’s economy which suggested that the need for additional stimulus was no longer an immediate likelihood. Tomorrow, the BOJ will be announcing its monetary policy decisions but investors and analysts are agreed that it is unlikely that the policy will change.
As reported at 11:36 a.m. (JST) in Tokyo, the USD/JPY pair traded at 101.478 Yen, recovering from yesterday’s low of 101.10 Yen which was a break below the pair’s 200-day moving average. The EUR/JPY dipped to 138.62 Yen before recovering to 139.16 Yen. The EUR/USD steadied at $1.3712 but remained relatively mired in its recent range and still close to last Thursday’s 2½ month trough at $1.3648.
Fed Outlook Weighed
In the U.S., a mix of good and disappointing economic data weighed on U.S. treasury yields and comments made by several Federal Reserve officials, including Richard Fisher an John Williams of the Dallas and San Francisco Fed offices, also highlighted the Fed’s decidedly dovish outlook. Fisher, who had been hawkish in his views, said that interest rates were likely to remain unchanged until late in 2015.