Yen touches six-week low
The dollar touched a sixweek high against the yen on Thursday, bolstered by reports of a doubling of initial expectations for economic stimulus from Tokyo and bets that the Bank of Japan ( BOJ) will ease policy next week.
After sinking briefly below $ 1.10 on Wednesday, the euro recovered to trade around a quarter of a percent higher on the run- in to an ECB meeting that currency markets seem confident will deliver no great new easing to weaken the currency. In broader terms, the dollar is trading around its strongest since March against a basket of currencies, driven in the past week by a reheating of expectations for another rise in U. S. interest rates before the end of the year. With the euro moored to a range of around $ 1.10-$ 1.12, that has chiefly been playing out in the dollar- yen exchange rate.
"The market expects something in easing from the BOJ next week, so that is weighing on the yen," said Dominic Bunning, a currency strategist with HSBC in London.