27 Jan 2023
The Japanese Yen edged up against the Dollar on Friday as bets increased the Bank of Japan (BOJ) may make a hawkish shift in stance due to hot inflation.
Yet the U.S. Dollar moved away from close to a nine-month low against the Euro and a seven-month dip against the Pound as traders prepared for upcoming central bank meetings, Reuters reports.
The greenback fell 0.17% to 129.96 Yen in Asian trading as data revealed consumer price inflation in Tokyo accelerated this month to close to a 42-year high, pressurising the Bank of Japan to move away from stimulus reports.
However, this was a far cry from the low earlier in the day of 129.50 and further still from the seven-and-a-half-month dip of 127.215 reached last week. After central bank officials voted to keep policy settings unchanged, the rate hit a high of 131.58.
“Market expectations for changes at any time (by the BOJ), including the next meeting in March, will remain high, and that will keep the Yen bid,” said Shinichiro Kadota, a strategist at Barclays in Tokyo.
“If there are any bouts of Yen weakness, I think the topside will continue to be capped by those expectations,” Kadota added.
In addition, for the week, the Dollar is up around 0.28% against the Yen.
Elsewhere, the Euro is on track for a 0.17% increase against USD since last Friday, despite a 0.17% fall on the day to $1.08715, down from a high overnight of $1.09295.
The Pound fell 0.23% to $1.23825, the Reuters news agency report adds, indicating a minor loss for the week. Yet Sterling remains near a seven-month high of $1.24475 hit on Monday.
Furthermore, the Dollar index – measuring the greenback against six major rivals – rose 0.19% to 101.94 yet remains on track for a minor fall this week.