Yen Remains Weak as Stimulus Speculations Persist

The Japanese yen remained weak today ahead of the Bank of Japan’s policy meeting minutes tomorrow amid speculations that the central bank will ease its policy further. The risk-positive market sentiment also weakened the currency.

Tomorrow, the BoJ will release the minutes of the meeting that was held on October 4–5. Panasonic Corp. predicted the second-biggest loss in history of the company. Such forecast led to speculations that Japan’s trade balance deficit will widen.

The market sentiment was not favorable for safe currency today. Both government and non-official data indicated that China’s Manufacturing Purchasing Managers’ Index rose in October. Together with expectations for stimulus from China, the news set a positive tone for today’s trading session.

USD/JPY rose from 79.74 to 80.01 as of 5:33 GMT today. EUR/JPY advanced from 103.35 to 103.66 and GBP/JPY climbed from 128.63 to 129.03.

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