Yen Falls Amid Fears Of BoJ Ending Ultra Loose Policy
March 12 2024 - 1:15AM
RTTF2
The Japanese yen weakened against other major currencies in the
pre-European session on Tuesday, as investors speculate that the
Bank of Japan is likely to end ultra easy-monetary policy as early
as next week.
Traders looked ahead to a slew of crucial economic data,
including reports on consumer and producer price inflation, for
more clarity about the U.S. central bank's interest rate moves.
The inflation data could have a significant impact on the
outlook for interest rates, with U.S. Fed officials saying they
need "greater confidence" that inflation is slowing before they
consider cutting rates. However, the Fed is widely expected to
leave rates unchanged at its monetary policy meeting next week.
The yen was trading higher against its major rivals in the Asian
session.
In the pre-European session today, the yen fell to 4-day lows of
161.44 against the euro, 189.20 against the pound and 168.27
against the Swiss franc, from early highs of 160.28, 187.99 and
167.13, respectively. If the yen extends its downtrend, it is
likely to find support around 163.00 against the euro, 192.00
against the pound and 170.00 against the franc.
Against the U.S., Australia, the New Zealand and the Canadian
dollars, the yen slipped to 4-day lows of 147.63, 97.58, 91.06 and
109.55 from early highs of 146.62, 97.02, 90.48 and 108.79,
respectively. The yen may test support near 151.00 against the
greenback, 99.00 against the aussie, 93.00 against the kiwi and
111.00 against the loonie.
Looking ahead, U.S. CPI data for February, U.S. Redbook report
and U.S. Federal Government monthly budget balance for February are
due to be released in the New York session.
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