Stimulus Speculation Drags On Yen

Stimulus speculation drags on yen

TOKYO,(APP - UrduPoint / Pakistan Point News - 25th july,2016) - The Yen slipped Monday on mounting speculation that the Bank of Japan will ramp up its stimulus programme after this week's policy meeting, while US Federal Reserve prepares for its own gathering. The meetings are the first since last month's vote in Britain leave the European Union, which caused central bankers around the world to promise fresh stimulus to negate any possible negative impact. More than three-quarters of economists polled by Bloomberg news said they expect the BoJ to make a policy move after its two-day meeting ends Friday.

"The tail risk is that if the BoJ remains firm this month, it will cause a knee-jerk risk implosion in the markets, sending stock prices plummeting and catapulting the yen higher," said Stephen Innes, senior trader at OANDA Asia Pacific. In Monday afternoon trading, the greenback rose to 106.31 yen from 106.19 yen Friday in New York.

The US unit is also well up from levels around 100 yen touched earlier this month in the aftermath of the EU leave vote.