“The yen weakened for a second day against the euro after Bank of Japan (8301) Governor Masaaki Shirakawa said policy makers will “pursue powerful easing” to help overcome deflation.
The dollar declined against the currencies of major U.S. trading partners after Federal Reserve Vice Chairman Janet Yellen said yesterday that U.S. borrowing costs will stay low, encouraging demand for riskier assets. Australia’s dollar rallied against all of its most-traded counterparts after employment increased more than economists forecast.
“The market is very focused on the BOJ and is pricing expectations that they do some more easing,” which is pressuring the yen, said Geoff Kendrick, head of European currency strategy at Nomura Holdings Inc. in London. “After the Australian data and the relatively dovish Yellen, there’s a bit of a positive mood.”
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