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In today's trading yen close to a nearly 20-month low against the dollar after the Bank of Japan announced an increase in the program of monetary stimulus by 10 trillion yen ($ 119 billion) to 76 trillion yen., But kept its inflation target at 1%.
Japan's currency fell against all major currencies this month, as the newly elected Japanese Prime Minister Shinzo Abe urged the Bank of Japan to double the threshold of inflation. The single currency is close to eight-month high against the dollar, due to the growth of the regional consumer confidence with three-and-a-half year low. But in spite of this, the U.S. currency still managed to regain most of the lost ground, what happened after the release of data from the U.S. Department of Commerce, which showed that the economy in the third quarter grew by 3.1%, compared with a preliminary estimate for level of 2.7%. Most analysts believe that growth will accelerate to 2.8% only.
At the same time, U.S. lawmakers continue to try to reach an agreement to prevent more than $ 600 billion in tax increases and spending cuts, due to start in January. While Republicans are trying to overcome their internal gaps related to taxes, by combining spending cuts, the White House said that the proposal is not acceptable, and therefore it can be seen that the negotiations between President Barack Obama and Boehner regress.
The dollar index (DXY) recorded a fifth consecutive decline, down today by 0.1% to 79.253 after touching a level of 79.008 yesterday, which is a minimum of 18 October.
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