The Japanese currency fell today against the US dollar on the outlook that the Federal Reserve will introduce the additional stimulus, supporting the US economy. The yen also fell versus some
The Standard & Poorâs 500 Index rose 0.3 percent and the Stoxx Europe 600 Index gained 1.4 percent. The European stocks rallied after the report showed that the German exports grew more than expected in June. The meeting of the Federal Open Market Committee, at which the quantitative easing should be discussed, will occur tomorrow. The investors reduce their short before the meeting, anticipating the stronger dollar.
The policy makers of the Bank of Japan will also meet tomorrow. Some experts suggest that the policy makers will try to limit the yen’s appreciation. Even without intervention the Japanese currency can possibly decline below 85.00 per the US dollar.
USD/JPY rose to 85.85 today as of 18:55 GMT from the opening level of 85.37, while AUD/JPY went up from 78.43 to 78.66.
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