Expectations that the recent Bank of Japan (BOJ) announcements on measures to combat deflation will debase the Yen further, have seen the currency drop to its weakest level since June 2009.
Earlier today the Yen was still trading on the back of recent BoJ monetary policy decisions and the currency is reaching levels which are bound to attract some profit-taking from earlier buyers.
On Thursday BoJ officials had said that the central bank will raise its monthly bond purchases to 7.5 trillion Yen ($77 billion), much higher than the 5.2 trillion Yen forecast by economists.
Japan's finance ministry data has shown that Japan's current account surplus, 637.4 billion Yen ($6.5 billion) in February, also had been larger than what the majority of economists had expected.
The BoJ has set a 2 year target to reach 2% inflation and its next policy meeting is scheduled for the 26th of April.
I foresee that the market is bound to price in additional policy announcements leading up to the next meet.
Earlier the Yen, traditionally considered a haven currency, touched 98.85 per Dollar, it's weakest level since June 2009. Last week alone it dropped by 3.4%. The Yen was also lower by 1% to 128.02 per Euro.
In the past 6 months the Yen has dropped in value by 21% while, in comparison, the Dollar rose by 1.8% and the Euro by 1.9%
Japan's finance ministry data has shown that Japan's current account surplus, 637.4 billion Yen ($6.5 billion) in February, also had been larger than what the majority of economists had expected.
The BoJ has set a 2 year target to reach 2% inflation and its next policy meeting is scheduled for the 26th of April.
I foresee that the market is bound to price in additional policy announcements leading up to the next meet.
Earlier the Yen, traditionally considered a haven currency, touched 98.85 per Dollar, it's weakest level since June 2009. Last week alone it dropped by 3.4%. The Yen was also lower by 1% to 128.02 per Euro.
In the past 6 months the Yen has dropped in value by 21% while, in comparison, the Dollar rose by 1.8% and the Euro by 1.9%
Today the Dollar remained lower as against the Euro, leading up to an announcement by U.S. Federal Reserve Chairman Ben S. Bernanke later in the day, after a report released last week which had shown that U.S. employers had added the least jobs in nine months during March.
The U.S. central bank's next policy meeting is scheduled to take place on 30th April and 1st May.
The South Korean Won has declined to its weakest level in over eight months, at 1,140.15 per Dollar, on escalating military tensions on the Korean Peninsula.
Heightened risks of conflict with North Korea has acted as a catalyst for outflows of foreign funds as investors become nervous.
South Korean President Park Geun Hye's office has said that they expect that the North may fire a missile around April 10th although uncertainty persists as to when and if that will in fact happen.
The South Korean Won has declined to its weakest level in over eight months, at 1,140.15 per Dollar, on escalating military tensions on the Korean Peninsula.
Heightened risks of conflict with North Korea has acted as a catalyst for outflows of foreign funds as investors become nervous.
South Korean President Park Geun Hye's office has said that they expect that the North may fire a missile around April 10th although uncertainty persists as to when and if that will in fact happen.
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