The Japanese yen strengthened against the other major currencies in the pre-European session on Friday, as the Bank of Japan governor Haruhiko Kuroda said that the central bank is not planning to ease policy further now.
Speaking at a budget committee hearing, the central bank chief said the bank does not have plans for further monetary easing “at the moment”.
“But we’re ready to adjust policy without hesitation if there is any change in the underlying price trend,” he added.
The currency was also supported on its safe-haven status, as oil prices fell and disappointing bank lending data added to gloom over the state of Chinese economy.
China’s Shanghai Composite index was down as much as 3 percent on concerns a weakening currency will add to record capital outflows. The yuan steadied amid central bank intervention. China’s yuan purchases surged to a record in December, data showed today.
In the Asian trading today, the yen held steady against its major rivals.
In the pre-European session, the yen rose to more than a 3-year high of 81.02 against the Canadian dollar, from an early 2-day low of 82.44. The yen may test resistance near the 80.00 region.
Against the NZ dollar, the yen advanced to nearly a 4-month high of 75.44 from an early low of 76.75. The yen is likely to find resistance around the 74.00 area.
Moving away from early 2-day lows of 170.57 against the pound, 117.63 against the Swiss franc and 82.80 against the Australian dollar, the yen climbed to 168.99, 117.08 and 81.29, respectively. If the yen extends its uptrend, it is likely to find resistance around 167.00 against the pound, 116.00 against the franc and 80.00 against the aussie.
Against the U.S. dollar and the euro, the yen edged up to 117.56 and 127.99 from early lows of 118.27 and 128.41, respectively. On the upside, 116.00 against the greenback and 126.00 against the euro are seen as the next resistance levels of the yen.
Looking ahead, U.K. construction output and Eurozone trade balance, both for November, are due to be released later in the day.
In the New York session, U.S. PPI, retail sales data and industrial production,all for December, U.S. business inventories data for November, U.S. Baker Hughes rig count data and the University of Michigan’s preliminary U.S. consumer sentiment index for January are slated for release.
At 9:00 am ET, Federal Reserve Bank of New York President William Dudley is expected to speak at the Economic Leadership Forum in New Jersey.
At 1:00 pm ET, Federal Reserve Bank of Dallas President Robert Kaplan is scheduled to participate in a moderated Q&A session before the Dallas Assembly Luncheon hosted by the Federal Reserve Bank of Dallas.
At 5:00 pm ET, Canadian Finance Minister Bill Morneau will engage in consultations ahead of the new Liberal government’s first federal budget at a townhall at the University of Calgary in Calgary, Canada.
The material has been provided by InstaForex Company – www.instaforex.com