News Column

Yen Falls Ahead Of BOJ Monetary Policy Decision

July 13, 2014



CANBERA (Alliance News) - The Japanese yen weakened against the other major currencies and held steady thereafter in the Asian session on Monday, as traders await the outcome of Bank of Japan's two day monetary policy meeting, due tomorrow.

The Economists expect the bank to keep policy unchanged at its July 14-15 meeting. The bank is expected to keep interest rate unchanged at 0 to 0.10%, while targeting monetary base expansion at an annual pace of 60-70 trillion yen.

The Bank of Japan Governor Haruhiko Kuroda will hold a press conference following the monetary policy announcement.

Against the US and Australian dollars, the yen slipped to 4-day lows of 101.42 and 95.34, from last week's closing quotes of 101.32 and 95.10, respectively. The yen may test support near 102.10 against the greenback and 96.16 against the aussie.

The yen fell to 137.98 against the euro and 173.60 against the pound, from last week's closing quotes of 137.80 and 173.43, respectively. If the yen extends its downtrend, it is likely to find support around 139.11 against the euro and 175.45 against the sterling.

Against the Swiss franc, the yen edged down to 113.62. On the downside, 114.19 is seen as next support level for the yen.

Against the NZ dollar, the yen fell to 89.42, from last week's closing quote of 89.24. Continuation of bearish trend may lead the yen to a support around the 90.10 mark.

Data from the Real Estate Institute of New Zealand, or REINZ, showed that New Zealand's house prices index declined % in June. The REINZ housing price Index dropped 0.3% month-over-month to 3,913.3 in June.

Looking ahead, Eurozone industrial production for May is set to be released in the European session.

At 1:00 pm ET, European Central Bank President Mario Draghi will deliver a speech before the Committee on Economic and Monetary Affairs of the European Parliament in Strasbourg, France.



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Source: Alliance News


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