The yen hit a three-week low on Monday on expectations the Bank of Japan could start lending to banks at negative rates, while sterling hit a five-week high in reaction to President Barack Obama urging Britons to stay in the European Union. On Friday, the yen fell 2.1 percent – its biggest fall since the day BOJ Governor Haruhiko Kuroda unleashed his second easing in October 2014 – after Bloomberg reported that the Bank of Japan is considering applying negative rates to its lending program for financial institutions.
But traders are also wary that further BOJ easing may have limited impact in weakening the yen, as did the introduction of negative interest rates in January. With much of any further easing already priced in, the yen may have limited room to fall further after the BOJ’s policy meeting on April 27-28, some analysts also said.
EUR/USD: during the Asian session the pair rose to $1.1245
GBP/USD: during the Asian session the pair rose to $1.4465
USD/JPY: during the Asian session the pair dropped to Y111.00
Based on Reuters materials
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