Dollar-yen closed in NY Friday around Y90.02 with rate picking up fresh demand interest into early Asian trade Monday which took rate to an early high of Y90.25. However, this early rise was greeted by reported US investment house sales, suggested to be linked to interest rate product structures. This selling eased rate below Y90.00 with Japanese life company sales prompted on the move below Y89.85. Further stops were triggered through Y89.60/50 before rate based at Y89.43 and managed to edge back to Y89.80. Rate then settled into a Y89.50/70 range ahead of the European open. Euro-yen closed Friday around Y120.00, opening Asia around Y119.80 before it edged higher in early trade to Y120.24. This rate turned lower, as it tracked dollar-yen’s easing, dropping to Y119.08. Rate recovered to Y119.62 before it steped its way back down to Y119.12. Rate was trading backa round Y119.35 into early Europe. Focus in yen seen on the BOJ two-day meeting (which began today) with most expecting the BOJ to set a 2.0% inflation target, though some speculation that they will hold off setting a specific time frame for this.
EasyForexNews Research Team