Yen continued to rise after meeting Bank Japan
2022.12.22 00:52
Yen continued to rise after meeting Bank Japan
Budrigannews.com – After the Bank of Japan’s unexpected change to its bond yield control earlier this week provided a catalyst for trade in an otherwise dull week ahead of year-end holidays, the yen strengthened toward its recent four-month peak against the dollar on Thursday.
After soaring to a four-month high of 130.58 on Tuesday, the BOJ’s decision to allow the 10-year bond yield to move 50 basis points either side of its 0% target, which was wider than the previous 25 basis point band, pushed the yen up about 0.3 percent to 132.05 per dollar.
After the news on Tuesday, the dollar, which had gained 0.6 percent against the yen in the previous session, had failed to significantly recover its decline of 3.8 percent.
Sean Callow, a senior currency strategist at Westpac, stated, “The BOJ opened the door, obviously, for further unwinding of its super-loose policies.”
“The question is, what is the yen’s price movement? After absorbing the shock of Tuesday, do people want to try to keep pounding on (dollar/yen)?”
The yen held steady at 140.27 against the euro and was trading at 159.73 per pound. The two sets were holding near about three-month tops hit on Tuesday.
After losing 0.85% overnight, sterling’s value against the dollar increased to $1.2102 by 0.14 percent.
Overnight statistics revealed that British public borrowing unexpectedly increased to its highest level ever recorded in November, highlighting the difficulties facing the British economy.
“The getting figures are only a sign of what a troublesome position the UK is in, financially,” Puerile said.
“Compared to other currencies, currencies whose countries have a twin deficit are at risk in a world where risk sentiment is still very fragile.”
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The euro gained 0.1% to $1.0617 and 0.22 percent to $0.67225.
After a 0.8% drop overnight, the dropped 0.06% to $0.62905.
At 104.10, the was 0.13 percent lower against a basket of currencies.
Data released overnight showed that fewer households planned to make big-ticket purchases over the next six months as fears of a recession persisted despite consumer confidence rising to an eight-month high in December as inflation fell and the labor market remained robust.
The Chinese yuan was last slightly higher at 6.9775 per dollar in Asia, but has traded mostly sideways in the last few sessions as concerns over an increase in COVID-19 cases in the country have grown.
State media reported on Wednesday that the cabinet had stated that China would seize the opportunity to implement policy measures to support the economy, aiming for an improvement in growth in early 2023, despite the fact that the country’s strict COVID-related restrictions had severely harmed the economy.
