Yen gains against greenback as Bank of Japan opts against strengthening stimulus program

Posted On: June 15, 2012
The value of the Japanese yen gained the most in 14 days against the world's reserve currency on Friday after the central bank of the Pacific Rim nation declined to widen monetary stimulus, according to Bloomberg.

The yen's gains against the U.S. dollar on the final trade session of the week represent the top performance for the currency since May 31 as it gained 0.8 percent against the greenback. It increased 1.1 percent against the shred currency of the European Union.

"The talk of central-bank action prompted some speculation the Bank of Japan might have acted to do something today," head of global currency strategy Mitul Kotecha with Credit Agricole Corporate & Investment Bank in Hong Kong told Bloomberg. "Had it acted, it would have been negative for the yen. The fact that it didn't obviously is pushing the yen higher."

The Bank of Japan preserved its asset-purchase fund at 40 trillion on Friday, prompting the yen to gain in value against each of 16 top rivals.

The Wall Street Journal reports the focus on Sunday elections in debt-riddled Greece continued growing larger as the vote is projected to impact global financial markets.

Category: Industry News

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