Yen Falls on Anticipation of Stimulus

The Japanese yen weakened today on the speculation that the nation’s central bank will perform stimulus measures to help the recovery of the economy.

The policy makers of the Bank of Japan will meet tomorrow and many economists expect that they will decide to expand the program of asset purchases on the meeting. Japan’s private-sector machinery orders decreased at a seasonally adjusted rate of 3.3 percent in April, following the increase by 1 percent in March. The report was a total surprise for traders that expected a growth by 2.0 percent.

USD/JPY traded at 80.36 today as of 8:06 GMT, near its opening level of 80.29, after it jumped to the intraday high of 80.68. EUR/JPY went up to 115.39 from 115.03 and posted the intraday high of 115.65 earlier.

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