The Yen rose against the Dollar today as concerns mounted that the Bank of Japan (BOJ) is struggling to control the rise in Japanese government bond (JGB) yields.
Following a statement by BOJ Governor Haruhiko Kuroda yesterday, to the effect that Japan could cope with rising interest-rates as yields on JGBs rose for a third week, the Yen strengthened against most of its major counterparts.
Having reached 1% Yields on Thursday, the highest in a year, today Japan's 10-year government bonds were at 0.85%.
Some BOJ board members, according to minutes of the last policy meeting in April, have attributed greater bond volatility to the central bank's debt purchases. The BOJ's aim is to meet a 2% inflation target.
Some analysts are recommending that investors watch for a selloff in Japan's currency and bonds.
The Yen has lost 17% over the past six months, after Prime Minister Shinzo Abe pledged to end 15 years of deflation.
The Yen earlier today rose by 0.2% to 101.08 per Dollar and by 0.1% to 130.86 per Euro. The Euro was little changed at $1.2947.
Some BOJ board members, according to minutes of the last policy meeting in April, have attributed greater bond volatility to the central bank's debt purchases. The BOJ's aim is to meet a 2% inflation target.
Some analysts are recommending that investors watch for a selloff in Japan's currency and bonds.
The Yen has lost 17% over the past six months, after Prime Minister Shinzo Abe pledged to end 15 years of deflation.
The Yen earlier today rose by 0.2% to 101.08 per Dollar and by 0.1% to 130.86 per Euro. The Euro was little changed at $1.2947.
Today the markets in both the U.S.A. and U.K. are closed due to public holidays.
The Aussie dropped against most of its major counterparts earlier today after China's president, Xi Jinping, signalled tolerance for slower growth.
Concerns were raised amongst investors that a deceleration of China's economy will lead to reduced demand for commodity exports.
In fact, the slowdown in Chinese demand could persist in the near term and so could likely continue to weigh on the Australian Dollar.
The Aussie was little changed at 96.55 U.S. cents and touched NZ$1.1886, its weakest level since January 2009.
The Aussie dropped against most of its major counterparts earlier today after China's president, Xi Jinping, signalled tolerance for slower growth.
Concerns were raised amongst investors that a deceleration of China's economy will lead to reduced demand for commodity exports.
In fact, the slowdown in Chinese demand could persist in the near term and so could likely continue to weigh on the Australian Dollar.
The Aussie was little changed at 96.55 U.S. cents and touched NZ$1.1886, its weakest level since January 2009.
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