The pair is likely to trade in a tight range today in Asia before the Group of 20 nations hold a meeting of finance ministers and central bankers this week. The G7 finance ministers and central bankers said in a statement on Tuesday that “we reaffirm that our fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic objectives using domestic instruments, and that we will not target exchange rates.” An unnamed G7 official said there was concern over the unilateral guidance on yen’s FX rate, but a U.K. official who requested anonymity said later the G-7 was not singling out an individual country or currency. Investors will also focus on the outcome today of a two-day policy board meeting by the Bank of Japan, although markets participants expect the Japanese central bank to stand pat on the monetary policy this time. The rate moved from YY92.87 to Y93.78 on Wednesday, after hitting Y94.41 versus the dollar, the lowest since May 2010 on Monday.
EasyForexNews Research Team