Japanese yen is mostly weaker today, dropping as the prospects of long-term weakness weigh on the Asian currency. With a plan in place to boost the monetary base, and with no one in the G-20 trying to rein in Japan, it looks as there is a clear field for yen weakness.
Once again, there is talk that the US dollar will hit the 100-yen level. However, that is unlikely today. Even though the US dollar is stronger against its major counterparts, including the yen, there isn’t a huge in surge in strength for the greenback.
For the most part, the yen is seeing weakness as the effects of economic stimulus begin to really take effect. With the Bank of Japan planning to double the monetary base over the next two years, there is reason to expect fundamental, long-term weakness from the yen.
One exception today is that the yen is gaining against the euro. The 17-nation currency continues to struggle rue to its economic situation, and is down pretty much across the board — even against the yen.
At 16:30 GMT USD/JPY is up to 99.3300 from the open at 99.0055. GBP/JPY is also higher, moving up to 153.9800 from the open at 153.7925. EUR/JPY is lower, though, dropping to 130.1850 from the open at 130.2150.
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