The US Dollar gained some ground against the Japanese Yen and the Euro during the Asian trading session but it is poised, nonetheless, to finish off the week with a loss. Analysts say that the Dollar’s gain is due, in large part, to the Fed’s revised outlook and the diminished chance of near- and mid-term rate hikes. The Fed said in its latest policy statement that a rate increase by year’s end was still a possibility though the outlook for 2017 and 2018 rate adjustments culminated in a long-run 2.9% forecast, down from 3.0%.
As reported at 10:34 am (JST) in Tokyo, the USD/JPY was trading at 101.18 Yen, up 0.43%; the pair had earlier hit a 4-week trough at 100.10 Yen. On the current track, the Dollar is likely to lose about 1.1% for the week. The EUR/USD was trading lower at $1.1201, nearly flat.
Yen 100 Level Eyed
Analysts say that a break of the 100-Yen price, which is considered a key technical point, could open the USD/JPY to the downside. Japan’s vice finance minister pointed out that the financial authorities are wary of a speculative currency move and will respond accordingly, as needed. Earlier this week, the BOJ said that it would shift its focus from increasing the base money target to focusing on JGB interest rates.