JPY Daily News

Yen Receives Relief from Potential BoJ Interest Rate Cut

Two days ago the Yen stood at a 13-year high against the Dollar, but yesterday the JPY dropped against all of its major currency rivals. The JPY fell 5.2% against the USD and closed around 97.00, as the rally in equities sparked a tentative recovery in risk appetite.

A report was leaked by a Japanese newspaper late in the trading day that the BOJ is considering an Interest Rate cut this week. A Rate cut could help to stimulate the sluggish Japanese economy and also to send the JPY lower. The government feels the JPY is overvalued and threatens Japanese exports.

Contrary to this report, on Monday, a BOJ deputy governor made a statement that the BOJ was unlikely to lower Interest Rates. The BOJ Interest Rate currently stands at a relatively low. A reduction in Interest Rates will be on the table when the BOJ's policy board meets on Friday.

There will be one data release from Japan today as the Manufacturing PMI will be announced during late trading. A rising trend may have a positive effect on the nation's currency. Traders should pay close attention to the response of equity markets to the rising Dollar to determine how to continue with JPY positions.

Current Time: 05/27 04:55 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
10/29
	23:15	JPY	Manufacturing PMI		44.3	-	-