The Japanese yen continue to fall, heading to its recent record lows, on anticipation of additional aggressive easing measures from the Bank of Japan after the Group of Twenty gave Japan the go-ahead to reflate its economy.
The G-20 again voiced no objection on the past meeting to Japan’s policies. It is interesting to see how the Group tolerates the measures to weaken the yen, condemning currency wars at the same time. Politicians found an excuse, saying that the current monetary policy aimed at reviving the economy, not weakening the currency.
So BoJ can freely expand its quantitative easing and damp the value of the yen. Not a good notion for the Japanese currency. Additionally, the current market sentiment is mildly positive, making the yen useless as a safe haven.
USD/JPY rose from 98.14 to close at 99.48 and EUR/JPY climbed from 128.07 to 129.92. GBP/JPY advanced from 149.94 to 151.54, while its daily high was at 152.50.
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