The Japanese yen advanced in Asia on Wednesday after it slipped on the Bank of Japan’s move to enhance lending to commercial banks, as investors look at US housing figures and minutes from the Federal Reserve’s last meeting.
In the Tokyo trade, the dollar purchased ¥102.21, previously ¥102.40 on Tuesday. The euro dived ¥140.67 from ¥140.89, while it was almost even at $1.3762 versus $1.3759. The unit was pressured after a closely-monitored survey reported investment sentiment in economic powerhouse Germany sank from latest highs despite uncertainty about the strength of a US recuperation.
The Japanese currency plunged on Tuesday, following the BOJ upheld stretching its asset-buying program but said it would augment some lending system to stimulate borrowing. The move was taken as showing a willingness to set up future easing measures, which is inclined to weigh on the yen, as Japan sets for a sales tax increment in April that some fear will weaken a recovery in the world’s third biggest economy.
The BoJ meeting came a day after fresh data showed that while Japan’s economy expanded by 1.6 percent over last year, it slowed to 0.3 percent in the October-December quarter, presenting a major challenge for Prime Minister Shinzo Abe and his bid to reverse almost two decades of deflation.
Investors are reading the minutes from Ben Bernanke’s last meeting as Fed chief on Wednesday, while his successor Janet Yellen is about to face hard inquiries as the G20 holds its first meeting of the year this weekend.
The material has been provided by InstaForex Company – www.instaforex.com
The Japanese yen advanced in Asia on Wednesday after it slipped on the Bank of Japan’s move to enhance lending to commercial banks, as investors look at US housing figures and minutes from the Federal Reserve’s last meeting.
In the Tokyo trade, the dollar purchased ¥102.21, previously ¥102.40 on Tuesday. The euro dived ¥140.67 from ¥140.89, while it was almost even at $1.3762 versus $1.3759. The unit was pressured after a closely-monitored survey reported investment sentiment in economic powerhouse Germany sank from latest highs despite uncertainty about the strength of a US recuperation.
The Japanese currency plunged on Tuesday, following the BOJ upheld stretching its asset-buying program but said it would augment some lending system to stimulate borrowing. The move was taken as showing a willingness to set up future easing measures, which is inclined to weigh on the yen, as Japan sets for a sales tax increment in April that some fear will weaken a recovery in the world’s third biggest economy.
The BoJ meeting came a day after fresh data showed that while Japan’s economy expanded by 1.6 percent over last year, it slowed to 0.3 percent in the October-December quarter, presenting a major challenge for Prime Minister Shinzo Abe and his bid to reverse almost two decades of deflation.
Investors are reading the minutes from Ben Bernanke’s last meeting as Fed chief on Wednesday, while his successor Janet Yellen is about to face hard inquiries as the G20 holds its first meeting of the year this weekend.
The material has been provided by InstaForex Company – www.instaforex.com
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