Yen keeps slumping as investors monitor monetary policy divergence
On Monday, the Japanese yen kept going down during Asia trade with trade data unveiling better than expected figures, although exports as well as imports dipped notably ahead of a week expected to bring the BOJ’s and Fed’ comment on monetary policy.
The currency pair USD/JPY traded at 106.45, showing a 0.30% surge, while AUD/USD was worth 0.7470,going up 0.07%. As for GBP/USD, this currency pair was worth 1.3127, rising 0.13%.
In Japan, the adjusted trade balance kicked in at a surplus of approximately ¥33 billion, which is better than the ¥24 billion observed and imports slumped 18.8%, less than the 19.7% dip expected and exports sank 7.4%, less than the 11.6% tumble observed.
The US dollar index, normally gauging the greenback’s strength against key six currencies, gained 0.09%, trading at 97.50.
Ahead this week, market participants will look to Wednesday’s highly-anticipated Fed monetary policy statement for fresh guidance regarding the pace of interest rate lifts over the next several months as well as a monetary policy announcement from the BOJ on Friday, amid surging expectations for further stimulus.