Wednesday saw the Japanese yen cease two days of gains against the world's reserve currency after the new prime minister told the governor of the central bank he wants to see the inflation goal doubled to 2 percent, Bloomberg reports.
As two days of central bank meetings await less than two weeks out, Prime Minister Shinzo Abe met with Bank of Japan Governor Masaaki Shirakawa at the Japan Council on Economic and Fiscal Policy in Tokyo. The Japanese yen lost at least 0.2 percent against all 16 of its top counterparts.
"Flows overnight suggested there was some appetite to pick up the dollar and that encouraged people back into the trade. No one is going to want to be short yen going into the BOJ meeting," European head of FX research Derek Halpenny with Bank of Tokyo-Mitsubishi told Reuters on Wednesday.
Monday and Tuesday gains for the yen against the U.S. dollar totaled 1.3 percent.
Policy makers are set to meet January 21 and 22, Reuters reports. The yen is likely to continue enduring pressure in anticipation of those meetings.
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