Asian Session – Yen reaches fresh 3-1/2 year low against dollar
April 5, 2013 7:15 am
The yen extended losses in Friday’s Asian session to reach a fresh 3-1/2-year low after suffering its biggest one-day tumble since late 2008 in the previous day, when the Bank of Japan surprised markets by announcing bold monetary policy to attack deflation.
The dollar rose as high as 97.20 yen, a level not seen since August 2009. Profit taking towards the end of the session led the pair lower, last at 96.32.
Meanwhile a sharp rebound in Japanese government bond yields prompted the reversal, weighing on the dollar against the yen.
But there’s still a firm tone to and USDJPY will be bought on dips , with the 100 yen level expected eventually.
Yesterday the USJPY gained 3.6 percent after the BOJ pledged to adopt aggressive monetary stimulus, aiming to inject about $1.4 trillion into the economy in less than two years.
The yen extended losses in Friday’s Asian session to reach a fresh 3-1/2-year low after suffering its biggest one-day tumble since late 2008 in the previous day, when the Bank of Japan surprised markets by announcing bold monetary policy to attack deflation.
The dollar rose as high as 97.20 yen, a level not seen since August 2009. Profit taking towards the end of the session led the pair lower, last at 96.32.
Meanwhile a sharp rebound in Japanese government bond yields prompted the reversal, weighing on the dollar against the yen.
But there’s still a firm tone to and USDJPY will be bought on dips , with the 100 yen level expected eventually.
Yesterday the USJPY gained 3.6 percent after the BOJ pledged to adopt aggressive monetary stimulus, aiming to inject about $1.4 trillion into the economy in less than two years.
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