Yen drops against euro and greenback

Published: 22 Jan at 8 AM Tags: Euro, Dollar,

The yen is weaker against the euro and the dollar as investors wait for the results of a Bank of Japan policy meeting. Analysts are expecting the central bank to hold off on any further easing until the effects of last April’s hike in sales tax are fully evident.

The euro has risen from 140.33, its lowest level in six weeks, to 141.40 yen. The dollar is just off a week-high of 104.75 yen at 104.28. The single currency is currently worth $1.3358.

The greenback is holding its own after some analysts believe the Federal Reserve could decide to reduce its $75 billion bond buying strategy by another £10 billion per month as early as next week. The US dollar has risen to a four-year high against the Canadian dollar and was earlier trading just above C$1.1000. However, the greenback dropped to C$1.0966 following an announcement that manufacturing sales in Canada rose to its highest level for two years last November.

The Australian dollar remains close to its lowest level in more than three years ahead of consumer inflation data due out today. The Aussie is currently worth $0.8801.

If CPI data from Australia comes in lower than expected the Aussie is likely to continue to struggle.