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Japanese Yen holds steady, as Aussie slips on RBA Dovish Position

By DailyForex.com
The Japanese Yen is continuing to hold near 7-week highs versus the U.S. Dollar in Asian trading in Tokyo today, as investors take a wait-and-see approach to determine whether or not the incoming Democratic party would result in positive change for the Japanese economy.

As reported at 3:15 p.m. (JST), the Japanese Yen held firm against the greenback, trading at 93.07 Yen, remaining within striking distance of the 7-week peak of 92.54 established on the EBS trading platform yesterday. The Yen’s rise this week was further helped along by another decline in the Shanghai share market, prompting investors to cut their high-risk exposure.

Also in Asian trading, the Australian Dollar slipped broadly following the unexpected dovish tone taken by the Australian Reserve Bank. In a recent press release, the Australian central bank indicated that the current trading rate would be held as it was deemed appropriate for the economy, ending speculation by investors and analysts that the rate be increased.

Versus the U.S. Dollar, the AUD slipped to $0.8418, a decline of .2%; following the RBA’s statement, the New Zealand Dollar (NZD), also slipped from $0.6898, last month’s 11-month high, to $0.6879. One economist in New Zealand commented that the RBA is likely hedging its best, and while interest rates will certainly have to rise, the time remains unclear.

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