Yen touches six-week low

The Pak Banker - - MARKETS/SPORTS -

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.

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