The Japanese yen marked a second consecutive trade session of losses against the world's reserve currency on Tuesday as the central bank of the U.S. convenes two days of meetings, Bloomberg reports.
The yen drew down against all of its major rivals except for one as the Federal Open Market Committee is poised to discuss how much longer the U.S. Federal Reserve will implement monetary stimulus measures. The Bank of Japan indicated its current-account balance pushed to a record high as a consequence of Japan's aggressive economy-spurring measures.
"Market participants are uncertain about the outlook for extraordinary policy support being provided by the Federal Reserve and the Bank of Japan," states a client note authored by currency strategist Joseph Capurso with Commonwealth Bank of Australia, according to Bloomberg. "Hedgers such as real money managers and corporates may consider taking cover against the risk of heightened volatility."
Monday losses for the yen against the U.S. dollar surged as high as 0.9 percent, pushing well past its 0.2 percent losses on Monday.
Losses during the first two days of the week come after the yen achieved close to its biggest weekly gain against the U.S. dollar in almost four years, according to Reuters.
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