The Japanese Yen edged back up off of the day’s lows versus the U.S. Dollar though analysts expect it will continue to stay under pressure as investors worry that the Bank of Japan will eventually consider additional monetary easing later in the month. Earlier today, the Bank made no change to their current benchmark interest rate.
The Yen was sold primarily by Japanese importers who have continued to increase their fossil fuel buying now that nearly all of Japan’s nuclear reactors are inoperable. Investors are hopeful that after the Bank of Japan issues its economic outlook later this month, the Bank will officially take additional stimulus measures to boost the frail economy. As reported at 1:14 p.m. (JST) in Tokyo, the Yen was trading against the U.S. Dollar at 81.87 Yen, edging off the intra-session low of 81.56 Yen, a gain of 0.1%.
The Euro gained nearly 0.4% on the Yen, trading at 107.16 Yen, as investors shifted sentiment slightly to riskier assets. The Euro has been gaining some strength against the Yen and the U.S. Dollar, in the wake of disappointing jobs data last week which is offering it some support. Against the U.S. Dollar the Euro was trading 0.2% higher at $1.3136, pulling off the Monday low of $1.3033.