The pair is likely to trade in a tight range, with investors seen focussing on the euro after European Central Bank President Mario Draghi warned of risks stemming from a strong euro. At Thursday’s press conference, Draghi said exchange rates “should reflect fundamentals,” adding that “we certainly want to see whether the appreciation, if sustained, will alter our risk assessment as far as price stability is concerned.” The euro reached $1.3711 on Feb. 1, the highest since November 2011, while hitting Y127.71 on Feb. 6, the best level since April 2010 before concerns about political turmoil in Italy and Spain emerged. Investors will also focus on any developments on nomination works for the new Bank of Japan governor after incumbent chief Masaaki Shirakawa announced his intention of stepping down on March 19, together with his two deputies, ahead of the expiration of his term on April 8. Prime Minister Shinzo Abe is expected to present his candidate for the next BOJ governor to opposition parties after a visit to the U.S. this monthThe rate moved from Y93.08 to Y93.92 on Thursday.
EasyForexNews Research Team