Dollar-yen closed Monday’s session at Y93.94, having failed to extend the opening Asian highs of Y94.22 following the weekend G20 Communique. Rate had seen pullback lows of Y93.76 before recovering into the close. Rate came under heavier selling into Asia, extending corrective its pullback to Y93.57 with traders linking this move to comments from FinMin Aso that the government was not currently considering revisions to BOJ law, as well as not considering the purchase of foreign bonds (possibly showing a rift between Aso and PM Abe). Rate recovered to Y93.92 before momentum faded, the rate then settling back between Y93.60/70 as the BOJ Minutes contained no major surprises. Chief Cabinet Secretary Suga said that the next governor of the BOJ would be announced after Abe returns from the US. Euro-yen closed Monday at Y125.45, having pulled back from an extended high of $125.90, the corrective pullback extending in early Asia to Y124.88 as it tracked dollar-yen’s reaction to Aso comments. Recovery to Y125.35 attracted fresh supply that eased it back to Y124.95 before it recovered to Y125.20 into Europe.
EasyForexNews Research Team