Japanese Yen Rallies On BoJ Pivot Hopes
December 07 2023 - 5:09AM
RTTF2
The Japanese yen climbed against its major counterparts in the
European session on Thursday, as comments from Bank of Japan
governor Kazuo Ueda boosted hopes that the central will end its
negative interest-rate policy soon.
Speaking to the Parliament, Ueda said the BoJ has several
options to pull interest rates from negative territory. These
include continuing to target the interest rate it applies to cash
reserves kept at the bank by financial institutions or reverting to
a policy directing the overnight call rate.
"We have not made a decision yet on which interest rate to
target once we end our negative interest rate policy," Ueda
said.
Preliminary data from the Cabinet Office showed that Japan's
leading index declined for the second straight month in
October.
The leading index, which measures future economic activity, fell
to a 3-month low of 108.7 in October from 109.3 in the previous
month.
The yen firmed to 1-1/2-month highs of 181.88 against the pound
and 165.29 against the franc, off its early lows of 184.98 and
168.42, respectively. The currency is seen finding resistance
around 172.00 against the pound and 144.00 against the franc.
The yen advanced to a multi-month high of 144.54 against the
greenback and more than a 2-month high of 155.74 against the euro,
from its early lows of 147.31 and 158.58, respectively. The
currency may find resistance around 139.00 against the greenback
and 150.00 against the euro.
The yen climbed to a multi-month high of 106.36 against the
loonie, 1-1/2-month high of 94.97 against the aussie and a
multi-week high of 88.90 against the kiwi, reversing from its early
lows of 108.36, 96.49 and 90.47, respectively. The currency is
poised to find resistance around 104.00 against the loonie, 92.00
against the aussie and 86.00 against the kiwi.
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