During the Asian trading session, the Japanese Yen struck multi-month lows against the U.S. Dollar and single currency Euro on investor speculation that the Bank of Japan is prepared to intercede in the Japanese currency’s strong appreciation.
As reported at 1:23 p.m. (JST) in Tokyo, the USD/JPY pair was trading at a high of 80.02 Japanese Yen on the EBS trading platform, the highest price since early July, before trimming gains to stand more recently at79.85 Yen, a loss of 0.1%. The EUR/JPY pair rose at one point to 104.59 Yen, a level not seen since early May; more recently, the pair stood at 104.22 Yen, a loss of 0.2%. The Yen also hit a 1-month low against the Australian Dollar.
The Bank of Japan will be meeting on October 30th to decide monetary policy, and insiders expect more easing on the way. A strengthening U.S. economy in the final quarter of the year and diminished concerns over the Eurozone debt crisis are also putting pressure on the Japanese Yen. Analysts believe that the greenback could rise toward 83 Yen before the year’s end, though there is some resistance seen in the very short-term.
Yen Softer, BoJ Easing Prospects Rise
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.