The yen weakened for a second day against all of its 16 most-traded counterparts after the Bank of Japan suggested more stimulus may be needed even as global economic growth accelerates. The dollar gained to a one-week high versus the yen as Bank of Japan Deputy Governor Kiyohiko Nishimura said the central bank is ready to implement additional easing. The Japanese currency dropped the most against the pound after Nishimura said it’s vital to make efforts to support upward momentum toward an economic recovery. The BOJ is “committed to implementing additional easing measures, if deemed necessary,” he said in a speech in Okayama, western Japan.
Euro fell against the dollar amid growing profitability of peripheral bonds. Thus, the yield on 10-year bond 5.87% Spain 5.71% against the previous. A yield of 10-year bonds of Italy 5.52% against 5.40% earlier. Also, pressure on the single currency was the fact that Italy has revised forecast for growth. According to the statement, the growth in 2012 will decrease by 1.2% against the previous estimate of -0.5%. In 2013 the economic growth of 0.5% against the previous forecast of 0.3%.
The pound rose after Bank of England minutes showed policy maker Adam Posen ended a push for more stimulus. The pound advanced for a second day versus the euro after minutes of the Bank of England’s April 4-5 meeting published today showed Posen joined the majority of the nine-member Monetary Policy Committee in seeking no change to the 325 billion-pound ($517 billion) asset-purchase target. While officials said the U.K. may face a recession in the first half of this year, they also said inflation might pose more of a danger than previously anticipated.
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