The Japanese yen on Wednesday notched its biggest gain in about four weeks against the world's reserve currency as speculation strengthened that the central bank of the Pacific Rim nation will hold off additional easing, Bloomberg reports.
The country hosting the world's third-biggest economy has demonstrated its recovery from the Great Recession is strengthening. The yen, akin to other monetary units when subject to easing policies, had endured sharp losses since the Bank of Japan initiated aggressive stimulus programs in December of last year.
"Japan's seen a pretty big improvement in its competitiveness, given how far the yen has fallen on a trade-weighted basis, and that should translate into better export performance," currency strategist Jonathan Cavenagh with Westpac Banking Corp. told Bloomberg on Wednesday. "Those types of factors should, at the margin, be yen-supportive."
The yen also advanced against the common currency of the European Union, marking a second-straight day of gains.
The performance of the yen is likely to be influenced by the release of minutes from the June meeting of the U.S. Federal Reserve on Wednesday, according to Reuters.
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