Yen Falls vs. Majors as Traders Anticipate Intervention from BoJ

The Japanese yen fell against other major currencies today on speculation that the Bank of Japan will continue its efforts to weaken the currency. Even fears of the European debt crisis were not been able to help Japan’s currency.

Specialist estimated that Japan’s gross domestic product grew as much as 3.5 percent of the first quarter of 2012 from Q1 2011, when it fell 0.7 percent. Analysts predict that growth would slow as the export-oriented economy of Japan is under pressure from the strong currency and slowing demand for nation’s exports, caused by the global economic slowdown. It is likely that under such conditions the BoJ would not have any option but stimulate the economy more.

USD/JPY climbed from 80.18 to 80.36, following the rise to 80.55 — the highest price since May 3, and EUR/JPY advanced from 102.06 to 102.45 as of 14:38 GMT today after it touched 101.90 — the lowest rate since February 14.

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