The yen’s gains versus the dollar are faltering as the Bank of Japan holds its first of two policy meetings this month, with markets focusing on whether the central bank will signal a willingness to further ease policy amid global economic slowdown and deflationary pressures.
The Japanese currency paused Wednesday after gaining against the greenback on Tuesday when the dollar’s broad gauge posted its longest slide since the market turmoil of August, with last week’s jobs data fueling speculation the Federal Reserve won’t raise interest rates this year. Japan’s currency is little changed since Sept. 30 after posting its first two-month gain since June 2014. San Francisco Fed President John Williams, for a third time in just over a week, reiterated on Tuesday his support for a liftoff in 2015. The yen has benefited less than many peers from dollar weakness amid speculation the BOJ will ease later this month.
The yen was little changed at 120.25 per dollar as of 8:51 a.m. in Tokyo. It gained 0.2 percent on Tuesday. Over the past month, the dollar has risen about 0.8 percent against the yen while losing about 0.9 percent against the euro.
Bloomberg’s Dollar Spot Index, which tracks the currency versus 10 major peers, was at 1,201.88 from 1,200.72 in New York when it declined for a fourth day, the lengthiest stretch since Aug. 19-24, when China’s devaluation caused a global financial rout.
The BOJ is expected to announce no policy changes when it concludes a two-day meeting on Wednesday in Tokyo. Fifteen of 36 economists forecast the bank will add to its already unprecedented easing at the meeting on Oct. 30, a Bloomberg survey showed.
Source : Bloomberg