Japanese yen is higher today, thanks in large part to safe haven demand. However, this may not last. The Bank of Japan is expected to continue stimulus in April.
Yen is higher against most of its counterparts today. A great deal of uncertainty is causing demand for safe haven assets. Stocks are lower and concerns about the economies around the world are weighing on high beta currencies. As a result, that yen has the upper hand for now.
Even though the yen is higher now, it might see weakness in the near future. The Bank of Japan didn’t get the results it expected when announcing negative interest rates. While no action is expected at the meeting later this week, some think that policymakers will take steps at the meeting in April.
However, stimulus in Japan is likely to go back to asset purchase programs instead of relying on negative interest rates. Japanese leaders prefer a week yen in order to make exports seem more attractive and boost the economy.
At 13:39 GMT USD/JPY is lower, falling down to 113.6780 from the open at 113.9540. EUR/JPY is also lower, dropping down to 126.2370 from the open at 126.9460. GBP/JPY is down to 163.0120 from the open at 163.8650.
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