Asian Session – Yen remains strong after BOJ leaves monetary policy unchanged
October 4, 2013 6:31 am
The Bank of Japan left monetary stimulus unchanged as Japanese Prime Minister Shinzo Abe decided the economy is seeing a moderate recovery and business confidence has surged.
The yen remained strong after the announcement, keeping the US dollar under pressure and near August lows. USDJPY traded a range in the Asian session between 97.02 and 97.29 yen. The dollar is headed for a third weekly decline against the yen. For the week, the dollar has dropped 1.2 percent versus the yen.
The dollar is also weak against other currencies due to the stalemate in Washington DC, the US government shutdown and the impending debt ceiling. Also adding to dollar weakness was US data on Thursday which showed growth in the services sector fell in September as the pace of new orders dipped and hiring declined.
The dollar was unchanged against the euro during the Asian trade, with EURUSD stuck in a tight range between $1.3616 and $1.3630. Yesterday the euro hit an eight month high of $1.3645. For the week, the dollar has dropped 0.8 percent against the euro.
Against the Swiss franc, the dollar remains close to a 19-month low of 0.8966 reached yesterday. The Swiss franc is perceived as a safe haven asset in times of market uncertainty.
Looking ahead, it is expected to be a quiet European and US session as well since there are no key data releases. The all-important US jobs report (nonfarm payrolls) was supposed to be released today but will not be released because of the US government shutdown.
The Bank of Japan left monetary stimulus unchanged as Japanese Prime Minister Shinzo Abe decided the economy is seeing a moderate recovery and business confidence has surged.
The yen remained strong after the announcement, keeping the US dollar under pressure and near August lows. USDJPY traded a range in the Asian session between 97.02 and 97.29 yen. The dollar is headed for a third weekly decline against the yen. For the week, the dollar has dropped 1.2 percent versus the yen.
The dollar is also weak against other currencies due to the stalemate in Washington DC, the US government shutdown and the impending debt ceiling. Also adding to dollar weakness was US data on Thursday which showed growth in the services sector fell in September as the pace of new orders dipped and hiring declined.
The dollar was unchanged against the euro during the Asian trade, with EURUSD stuck in a tight range between $1.3616 and $1.3630. Yesterday the euro hit an eight month high of $1.3645. For the week, the dollar has dropped 0.8 percent against the euro.
Against the Swiss franc, the dollar remains close to a 19-month low of 0.8966 reached yesterday. The Swiss franc is perceived as a safe haven asset in times of market uncertainty.
Looking ahead, it is expected to be a quiet European and US session as well since there are no key data releases. The all-important US jobs report (nonfarm payrolls) was supposed to be released today but will not be released because of the US government shutdown.
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