The Japanese yen fell today to the lowest level in more than two weeks ahead of the Bank of Japan’s policy meeting. Economists expect that the central bank will add more stimulus, weakening the currency.
The Bank of Japan will announce its policy decision later today. The bank boosted its asset purchase program on its previous meeting and analysts expect that it will do so again at today’s meeting. Japan’s economy still remains troubled and the policy makers of the central bank usually blame the strength of the currency that hurt nation’s exporters.
The yen also slipped as central banks of other developed nations stimulated their economies. The European Central Bank signaled that it is ready to start a bond-buying program and the Federal Reserve confirmed that the monetary policy will remain accommodative for a prolonged time. That reduced demand for safe currencies, making the yen weaker.
USD/JPY rose from 78.46 to 78.54 as of 00:46 GMT today, while yesterday it touched 78.70 — the highest level since September 19. EUR/JPY was at 102.23, the highest since September 20, and GBP/JPY traded near 127.15, the high not seen since September 21.
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