Japanese Yen Hits 3-Month High
And, here we are again. After a short term correction to 78.27, the Japanese yen has powered its way back to the highest level in 3 months. The support for the move is increasing speculation that the Bank of Japan may need to consider another round of intervention – considering the spot exchange rate is only about 70 pips away from the record high. Currently, the Asian currency is trading at 76.30.
The recent move in the Japanese yen has been prompted by further speculation that the US Federal Reserve is likely to maintain loose monetary policy. The sentiment is helping to boost riskier currency positions in the market – especially the major currencies like the Euro and Japanese yen. Incidentally, the last time Fed policymakers noted a commitment to low interest rates back in August 2011, the Japanese yen rose 76.00 against the US dollar, and remained there for the duration of the third quarter.
The yen is also moving ahead of both the industrial production and household spending reports for release later this afternoon. Although household spending is likely to tick higher a bit, focus will be placed on the country’s industrial production report. Speculation is looking for the survey to show vast improvements over last year – with the most recent reports being widely disappointing on a slower than expected recovery from the March natural disaster.
Tue May 03, 2016 9:51 am by Andrea ForexMart
Subject: Japanese Yen Hits 3-Month High 
