FS: Japanese yen climbs to 4-day high against US dollar
During early Asian deals on Tuesday, the yen climbed to a 4-day high against the US dollar as the minutes released by the Bank of Japan showed that board members agreed at their June 15-16 policy meeting that economic conditions in Japan had stopped worsening, and that evidence of the economy's stability would be seen in coming months.
At the meeting, the board unanimously voted to hold the uncollateralized overnight call rate at 0.1 percent. It also kept Japan's long-term growth outlook unchanged.
The members conceded, however, that unemployment could remain uncomfortably high for the near term.
Some of the board members suggested ending the banks' various corporate funding measures, adding that global monetary policy in response to the economic slowdown has resulted in the recent increase in commodity prices.
The board ultimately did not set a timetable for the easing of the measures, voting to extend the measures at the meeting and in last week's July meeting, as well.
The BOJ upgraded its economic assessment at the June meeting for the second straight month, saying, "economic conditions, after deteriorating significantly, have begun to stop worsening."
The yen also edged higher against the European currency, the British pound and the Swiss franc.
Traders await the annual numbers of Japan's convenience store sales for June at 3:00 am ET. Also, the Tokyo department store sales and Nationwide department sales-both for the month of June are due out shortly.
Against the US dollar, the Japanese yen traded higher during early Asian deals on Tuesday. At 10:20 pm ET, the yen reached a 4-day high of 93.78 against the dollar, compared to 94.2 hit late New York Monday. The next upside target level for the yen is seen around 91.7.
The Japanese unit that closed Monday's North American session at 134.07 against the European currency climbed to 133.21 during today's early Asian deals. The euro-yen pair is currently trading at 133.29 with 130.9 seen as the next target level.
Against the British pound, the Japanese currency edged higher during Tuesday's early Asian deals. At 10:05 pm ET, the yen rose to 154.81 against the pound, compared to Monday's closing value of 155.92. On the upside, 152.4 is seen as the next target level for the Japanese currency.
The yen that closed Monday's New York deals at 88.23 against the Swiss franc hit a high of 87.69 at 10:05 pm ET. If the Japanese currency gains further, 86.0 is seen as the next target level.
In the European session today, Swiss trade balance, M3 money supply and the UK public sector net borrowing report are due for release.
The U.S. Federal Reserve Chairman Ben Bernanke is set to deliver his semi-annual monetary policy testimony to the House Financial Services Committee in Washington at 10 am ET today. Investors will be seeking clues on whether the Fed will begin unwinding some of the huge stimulus measures it undertook during the U.S. financial crisis.
