The Japanese Yen edged up against the greenback during the Asian trading session today, finally getting some respite after its sharp 2-week drop on expectations of a new Japanese government’s potentially aggressive monetary easing.
As reported at 12:34 p.m. (JST) in Tokyo, the USD/JPY pair was trading at 82.19 Yen, slipping 0.3% and well away from the peak of 82.84 Yen struck yesterday, the pair’s highest level in more than seven months. The U.S. Dollar has gained almost 3.4% on the Japanese currency over the last two weeks, and analysts believe that the pressure will resume on the vulnerable Yen before too long given the expectations of a BoJ policy change.
The Euro-Dollar also steadied and held close to the 3-week high struck yesterday, boosted there by optimism that the Greek government will receive its next bailout payment and won’t be forced to default on maturing debt. Earlier, the EUR/USD pair was trading at $1.2886, close to the 3-week peak of $1.2899 struck yesterday. While analysts have expectations that the loan will be agreed, there is still some lingering doubts as to its timing which could pressure the Euro in the short term. Also in the short term, investors will look to the release of the German IFO business survey; analysts expect the reading to slip to 99.5 for the month, down from October’s reading of 100.