JAPANESE YEN LOWER AFTER A DAY’S HIKE
On Thursday the Japanese yen fell lower than the U.S. dollar after having hiked considerably on Wednesday.
The Japanese Yen rose against its U.S. counterpart on Wednesday following comments by Bank of Japan (BOJ) Governor Haruhiko Kuroda saying the yen is not likely to get weaker.
“Most people might think that Kuroda would like to slow the dollar/yen’s moves, but I think it will go back to moving on fundamentals” said Masashi Murata, Currency Strategist at Brown Brothers Harriman.
Kuroda had also commented about the expected U.S. rate hike which he said is not bound to affect the Japanese Yen negatively.
“The Fed is getting ready to hike rates, and there is some chance the BOJ will ease further. So this monetary policy divergence should support the dollar/yen in the medium term, maybe this summer”.
The USD/JPY pair added 0.46 percent and reached 123.19.
The Yen was also lower than the Euro, and the EUR/JPY pair added 0.27 percent and traded at 139.31.
On Thursday the Japanese yen fell lower than the U.S. dollar after having hiked considerably on Wednesday.
The Japanese Yen rose against its U.S. counterpart on Wednesday following comments by Bank of Japan (BOJ) Governor Haruhiko Kuroda saying the yen is not likely to get weaker.
“Most people might think that Kuroda would like to slow the dollar/yen’s moves, but I think it will go back to moving on fundamentals” said Masashi Murata, Currency Strategist at Brown Brothers Harriman.
Kuroda had also commented about the expected U.S. rate hike which he said is not bound to affect the Japanese Yen negatively.
“The Fed is getting ready to hike rates, and there is some chance the BOJ will ease further. So this monetary policy divergence should support the dollar/yen in the medium term, maybe this summer”.
The USD/JPY pair added 0.46 percent and reached 123.19.
The Yen was also lower than the Euro, and the EUR/JPY pair added 0.27 percent and traded at 139.31.
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