Japanese yen is higher today, strengthening as Asian stocks weaken, and as Forex traders await more signs of stimulus from the Bank of Japan. While yen weakness is likely for the future, right now the currency is showing strength against its major counterparts.
Japanese yen is showing strength today, weighing on Japanese stocks, whose shares are dropping. Over all, Japanese stocks are turning in a relatively strong performance, but that is fading a bit as the latest round of stimulus runs its course.
Shinzo Abe is widely expected to put into place a sales tax increase soon, and that is weighing a bit on businesses. In order to counteract the sales tax boost, though, there are expectations of more stimulus — to the tune of 5 trillion yen — in the new year, which starts April 2014 for Japan.
So, even though the yen is showing some strength right now (or perhaps the other currencies are showing weakness), it is not likely to be long-lasting. Yen is expected to retain overall weakness in the long term as the Bank of Japan and other policymakers work to keep the economy going.
At 13:32 GMT USD/JPY is down to 98.6780 from the open at 98.8430. EUR/JPY is down to 133.0750 from the open at 133.3750. GBP/JPY is down to 157.6295 from the open at 158.5750.
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