The Japanese yen rebounded today even as investors continued to bet on an intervention from the Bank of Japan. Earlier, the currency reached the lowest level since July against the US dollar and the lowest since May versus the euro.
Some economists claim that the BoJ may intervene as soon as the next policy meeting. Supporting such speculations, Japanâs Economy Minister Seiji Maehara said that he may join the meeting and attempt to convince the policy makers to take additional actions against deflation. Maehara said that he hopes to “continue calling on the BOJ to pursue powerful monetary easing to achieve at an early date its 1 percent inflation target”. Such talks are bearish for yen, though it looks like the currency was able to absorb the negative influence today without too much harm.
USD/JPY fell from 79.92 to 79.84 as of 12:14 GMT today and its daily high of 80.00 was the highest since July 6. EUR/JPY was down from 104.37 to 103.81, while its intraday maximum was the highest since May 4.
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