The yen climbed to the strongest level in almost six weeks against the euro and gained versus all its most-traded counterparts as signs global growth is slowing underpinned demand for the relative safety of the currency.
The dollar rose versus all its major peers except the yen after South Korea unexpectedly lowered interest rates, while the euro slid below $1.22 for the first time since July 2010. The Bank of Japan (8301) refrained from expanding stimulus, adding to haven demand. China releases quarterly gross domestic product data today. Australia’s dollar slid after employers cut jobs.
“The Bank of Japan monetary-policy decision didn’t lead to any significant new expansion in the BOJ balance sheet or something the market would consider more aggressive quantitative easing,” Shahab Jalinoos, a Stamford, Connecticut-based senior currency strategist at UBS AG, said in a telephone interview. “The market was disappointed, and the yen clawed back some recent losses.”
The yen gained 0.9 percent to 96.72 per euro at 1:15 p.m. New York time after appreciating earlier to 96.43, the strongest level since June 1. Japan’s currency advanced 0.6 percent to 79.30 per dollar. The euro weakened 0.4 percent to $1.2196 after sliding to as low as $1.2167.
Japan’s currency rose versus the dollar as the extra yield investors receive for investing in two-year U.S. Treasuries versus comparable Japanese government bonds fell to the lowest in a month, limiting dollar-denominated assets’ appeal. The yield spread was 16 basis points, or 0.16 percentage point.
The dollar rose versus all its major peers except the yen after South Korea unexpectedly lowered interest rates, while the euro slid below $1.22 for the first time since July 2010. The Bank of Japan (8301) refrained from expanding stimulus, adding to haven demand. China releases quarterly gross domestic product data today. Australia’s dollar slid after employers cut jobs.
“The Bank of Japan monetary-policy decision didn’t lead to any significant new expansion in the BOJ balance sheet or something the market would consider more aggressive quantitative easing,” Shahab Jalinoos, a Stamford, Connecticut-based senior currency strategist at UBS AG, said in a telephone interview. “The market was disappointed, and the yen clawed back some recent losses.”
The yen gained 0.9 percent to 96.72 per euro at 1:15 p.m. New York time after appreciating earlier to 96.43, the strongest level since June 1. Japan’s currency advanced 0.6 percent to 79.30 per dollar. The euro weakened 0.4 percent to $1.2196 after sliding to as low as $1.2167.
Japan’s currency rose versus the dollar as the extra yield investors receive for investing in two-year U.S. Treasuries versus comparable Japanese government bonds fell to the lowest in a month, limiting dollar-denominated assets’ appeal. The yield spread was 16 basis points, or 0.16 percentage point.
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