The pair is likely to trade in a tight range today in Asia, with investors closely watching for remarks from policymakers for fresh trading leads. The yen rose against the dollar for the first time in five trading days on Tuesday after Akira Amari, Minister for Economy, Trade and Industry, said an excessive weakening in the value of the yen may hurt imports and households. The Bank of Japan, which is now under strong political pressure to take more aggressive monetary action, will hold the next policy board meeting on Jan. 21 and 22. As the EU joins the currency devaluation war, Luxembourg Prime Minister Jean-Claude Juncker said the euro’s rate is “dangerously high.” Investors will also focus on developments on talks on the debt ceiling in the U.S. for implications for risk sentiment after Treasury Secretary Timothy F. Geithner said a failure to increase the debt ceiling by early March would “impose severe economic hardship.” Yields on Treasury’s 10-year notes fell for three consecutive days, down xxx basis points amid uncertainties about the U.S. debt ceiling talks.
EasyForexNews Research Team