Greenback heads to the sidelines ahead of BOJ and Fed meetings

On Friday, the evergreen buck stood flat against the Japanese yen and the euro during holiday Asian trade, with market participants reluctant to take strong trading positions ahead of three-day weekend in Japan as well as monetary policy gatherings  of the Fed and BOJ next week.

The evergreen buck traded at ¥102.03, compared with Thursday’s outcome of ¥102.08 in New York. The common currency was moderately weaker at $1.1240 midday from $1.1242. Financial markets in Hong Kong, China and South Korea weren’t available today for a public holiday. As for Japan, financial markets there will be closed Monday for the country’s national holiday.

The WSJ Dollar Index, normally gauging the greenback’s value against six crucial currencies, earned 0.01%, reaching 86.53.

The major American currency slumped to as low as ¥101.70, with short-term traders taking speculative positions amid relatively thin trade in the early morning trading session. However, the greenback dared to bounce back to the ¥102-threshold and higher on short covering, remaining quite directionless later in the session with numerous traders avoiding making moves before the Federal Open Market Committee gathering and the BOJ’s policy meeting. 

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