USD/JPY drops on Fed uncertainty, BoJ policies

williamsimpson

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The dollar fell against the yen on Tuesday as traders continued to avoid the greenback ahead of the release of the Federal Reserve's March conference minutes on Wednesday, while a Bank of Japan choice to leave policy the same bolstered the Japanese currency.

In U.S. exchanging, USD/JPY was down 1.11 % and exchanging at 101.95, up from a session low of 101.90 and off a high of 103.12.

The pair was anticipated to check aid at 101.72, the low from March 27, and resistance at 104.12, Friday's high.

The yen rose against the dollar and most currencies after BoJ Governor Haruhiko Kuroda indicated that the bank was unlikely to carry out more stimulus measures at present. He included that growth and inflation were likely to continue to pick up in the coming months in spite of a sales tax boost in April.

Earlier Tuesday, the BoJ voted to keep its crucial policy target of enhancing base money unchanged at a yearly speed of ¥ 60 trillion to ¥ 70 trillion after ending its two-day policy meeting.

The dollar continued to slide as traders prevented the U.S. currency ahead of Wednesday's minutes of the Fed's March conference.

Last week's U.S. March jobs report was available in somewhat below expectations, which untangled investors, as Fed Chair Janet Yellen has actually said slack labor markets will require accommodative policies to remain in location for time.

In other places, emerging-market currencies rose across the board on sentiments that even though the Federal Reserve will remain to unwind its bond-purchasing program this year, rule will continue to be loose and generate higher-yielding currencies more attractive.

The yen, on the other hand, was up against the euro and up against the pound, with EUR/JPY down 0.72 % at 140.65, and GBP/JPY exchanging down 0.28 % at 170.73.

The euro saw some support after European Central Bank officials on Monday stressed that while fresh easing measures may be had to steer the euro zone far from deflationary pressures, implementation of such devices is not imminent.

Recently the ECB left the door open to additional stimulus measures, saying that unconventional monetary policy tools could be necessary to prevent the danger of ongoing poor inflation in the euro zone.
 
 
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