Monday saw the Japanese yen moderately rise in value against the world’s reserve currency as speculation mounted about policy makers with the central bank of the Pacific Rim nation preparing to widen the country’s easing program, Bloomberg reports.
The Bank of Japan opened two days of meetings on Monday and is aiming to rise from recession. New Prime Minister Shinzo Abe has been emphasizing easing policies, which also draw down the value of the yen. The past four weeks have seen the currency lose about 5.9 percent against the U.S. dollar.
“We see a bit of short covering going into the BOJ meeting with people being a little mindful that there could be some disappointment,” currency strategy head Jeremy Stretch with CIBC World Markets told Reuters on Monday. “Investors are being mindful that the moves we have seen over the course of the last month or two are just worth locking in at least until we understand how the BOJ are really going to play in the future.”
All 23 economists surveyed by Bloomberg forecast the Bank of Japan to continue asset purchases this week.
The central bank also is likely to double the inflation target, Reuters reports.
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