The Japanese yen weakened today against the US dollar and the Great Britain pound and traded near the opening level versus the euro as the traders consider the possibility of the intervention by the Bank of Japan in order to curb the currency’s gains.
The Japanese currency gained on the concern for the global economic recovery, spurred by the dovish statement of the Federal Reserve this week. The problem is that the strong currency may hurt the Japanese exporters, and thus harm Japan’s economic growth. The BoJ policy makers acknowledged this problem and said that they would monitor the currency markets to evaluate the impact of the yen’s moves on Japan’s economy.
The minutes of the Monetary Policy Meeting of the Bank of Japan Policy Board said:
With regard to the recent appreciation of the yen and fall in Japanese stock prices, some members said that the effects on Japanâs economic activity should be examined closely.
Analysts think that this statement may suggest that the central bank is ready to intervene in order to support the nation’s exporters.
USD/JPY rose from 85.89 to 86.24 today as of 17:40 GMT after it fell to the daily low of 85.56. GBP/JPY traded at about 134.58 after it opened at 133.77. EUR/JPY traded near its opening level of 110.17.
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