Yen Falls After BOJ Keeps Rates Unchanged
June 15 2017 - 10:06PM
RTTF2
The Japanese yen weakened against other major currencies in the
Asian session on Friday, after the Bank of Japan kept its monetary
stimulus unchanged as widely expected.
Governor Haruhiko Kuroda and his board members decided by a 7-2
majority vote to hold its target of raising the amount of
outstanding JGB holdings at an annual pace of about JPY 80
trillion.
The bank will purchase government bonds so that the yield of
10-year JGBs will remain at around zero percent.
The board also decided to maintain the -0.1 percent interest
rate on current accounts that financial institutions maintain at
the bank.
With regard to outlook, Japan's economy is likely to continue
its moderate expansion, the bank said.
Traders await the BOJ Governor Kuroda's press conference on
monetary policy decision later in the day.
Thursday, the yen showed mixed trading against its major rivals.
While the yen rose against the euro and the Swiss franc, it fell
against the pound and the U.S. dollar.
In the Asian trading, the yen fell to a 10-day low of 124.02
against the euro, from yesterday's closing value of 123.65. The yen
may test support near the 126.00 region.
Against the pound and the Swiss franc, the yen dropped to 1-week
lows of 142.18 and 114.10 from yesterday's closing quotes of 141.51
and 113.73, respectively. On the downside, 145.00 against the pound
and 115.00 the franc are seen as the next support levels for the
yen.
Against the U.S., the Australian, the New Zealand and the
Canadian dollars, the yen slid to a 2-week low of 111.27, a 1-month
low of 84.51, nearly a 3-1/2-month low of 80.26 and nearly a
3-month low of 83.91 from yesterday's closing quotes of 110.94,
84.08, 79.25 and 83.59, respectively. If the yen extends its
downtrend, it is likely to find support around 114.00 against the
greenback, 86.00 against the aussie, 81.00 against the kiwi and
85.00 against the loonie.
Looking ahead, Eurozone CPI data for May is due to be released
at 5:00 am ET.
In the New York session, U.S. housing starts for May, building
permits for May, U.S. labor market conditions index for May, U.S.
University of Michigan's preliminary consumer sentiment index for
June, and U.S. Baker Hughes rig count data are slated for
release.
At 12:45 pm ET, Federal Reserve Bank of Dallas President Robert
Kaplan is expected to speak at the Rotary Club of Park Cities, in
Dallas.
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