Stock Market Watch

Forex Market Update: Dollar Edge Higher Against Yen and Euro

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The U.S. dollar, which slumped to its one week low against the yen on Monday to trade at 93.53, rebounded on Wednesday gaining 0.15% to yen 94.55 in Asian trading hours as the news emerged that the Bank of Japan (BOJ) will soon kick start its aggressive monetary measures.

According to Reuters, Nikkei business daily said that the Bank of Japan, which is slated to held its policy rate meeting on April 3 -4, will announce more accommodating measures (boost bond buying program) as the world’s third largest economy tries to pull itself out from deflationary pressure. Earlier during the year, the BOJ raised its inflation target to 2% from 1%.

Sources familiar with the matter said to Reuters that the Bank of Japan, which was initially expected to launch its open-ended asset purchase program in 2014, is now expected start right away.

Meanwhile, the euro dropped to a four-month low against the U.S. dollar on Wednesday as investors are getting suspicious that Cypriot bailout agreement would serve as model for futures rescues. That means private investors will have to bear the brunt which in turn could trigger bank runs in vulnerable economies like Italy and Spain.

At around 8:40 EST, The euro slumped 0.61 percent on Wednesday to hit $1.2781, its lowest level since late November. Simmering concerns over political stalemate in Italy is also keeping the common currency under pressure. According to news reports, Italy’s head of center left alliance, Pier Luigi Bersani has categorically ruled out forming any coalition, saying that only “insane person” would like to govern Italy.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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