The pair closed in NY Monday at Y94.13, after recovering off a session low of Y93.53, with the recovery extending to Y94.24 into opening Asian trade. Rate dipped to Y93.87 before turning higher into the Tokyo fix, the move up then given an added boost on new BOJ Governor Kuroda comments concerning the extending of maturities of the JGB’s it buys under its asset buying programme from three to five years, as well as suggesting a scrapping of the bank note rule (the bank note rule is the policy where BOJ keeps total JGB purchased under the total amount of bank notes in circulation). Rate edged to a high of Y94.45, with strong asset manager demand noted in the move, but rally faded toward Y94.50 though only minor exporter sell interest was reported here. Larger exporter sell interest seen at Y94.90. Sales of Aussie-yen were cited for providing the main counter and pressed rate back into the Y94.20’s. Euro-yen closed in NY at Y121.00 after recovering off lows at Y120.08. Rate touched a low in Asia at Y120.73, recovered to Y121.56 then settled between Y121.10/40 into Europe. End of month looming, exporters expected to show end of FY demand for yen that could counter any upside push. Retail investors to emerge into dips.
EasyForexNews Research Team