The US Dollar had edged up versus the Japanese Yen following Haruhiko Kuroda’s comments that the Japanese central bank would not be making predictions on the Yen’s future movements. Analysts say that that was, in fact, a knee jerk reaction to media headlines but once markets realized that the Bank of Japan Governor didn’t actually provide any insight that gains were then pared. Analysts continue to point out that the likely divergence of policies between the Bank of Japan and the Federal Reserve is likely to continue to put the greenback in a superior position. Despite the current pause, many experts believe that the BOJ will be adding to stimulus later this year.
As reported at 9:18 am (BDT) in London, the USD/JPY was trading at 123.5450 Yen, a gain of 0.11%; the pair had earlier hit a session peak of 123.7600 Yen, while the day’s low was at 123.3100 Yen. The EUR/JPY was lower at 139.0540 Yen, a loss of 0.10%; the Euro remains under pressure as a result of the uncertainty of the Greek debt deal.
FOMC Decision in Focus
Expectations are high that the Federal Reserve Bank is likely to increase interest rates in the mid-term. However, analysts caution investors to be wary and point to economic data for guidance; there was an unexpected decline in May’s industrial production figures. The Federal Reserve is due to release its latest policy decision tomorrow, and though interest rates are predicted to remain at current levels, analysts will be watching for any clues in the statement to possible timing.