Wednesday saw the Japanese yen advance against the world’s reserve currency amid beliefs the central bank is falling short of spurring the world’s third-largest economy with its easing programs, according to Bloomberg.
Marking a third-straight day of gains, the yen has climbed roughly 2 percent against the U.S. dollar thus far this week. New Prime Minister Shinzo Abe, whose calls for easing have been loud and clear since before he was elected last month, is preparing to name new officials at the central bank, two deputy governors in March and a new governor in April.
“The BOJ meeting was marginally disappointing so there is a bit of profit-taking going on,” currency strategist Geoff Kendrick with Nomura told Reuters on Wednesday. “Our view is that we will get stuck below 90 yen but probably go no lower than 87 until we get more news, which will not come out until we find out who the new (BOJ) governor is.”
The three days of gains for the yen against the dollar this week are the longest rally since the end of this past November.
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