The Australian dollar rose versus the yen for a second day on speculation pressure will increase on the Bank of Japan (8301) to expand stimulus after core consumer prices in the nation declined last month.
The so-called kiwi dollar traded 0.3 percent from its highest level versus the yen since September 2008 after minutes of a BOJ policy meeting in December showed the central bank intends to continue powerful easing. The Australian currency reached a three-week low versus the U.S. dollar as traders remained almost split on whether the Reserve Bank of Australia will cut its benchmark interest rate on Feb. 5.
“We should see more yen weakness, and Aussie-yen as a consequence is beginning to perform quite well,” said Jim Vrondas, the chief currency and payments strategist, Asia- Pacific, at OzForex Ltd. in Sydney. “The market is quite confident that the new regime in Japan, for the time being at least, is going to deliver on what they’re saying in a somewhat aggressive way,” he said referring to Liberal Democratic Party’s return to power after elections last month.
Australia’s dollar rose 0.2 percent to 94.56 yen as of 4:42 p.m. in Sydney. It fell as low as $1.0439, the weakest since Jan. 4, before trading unchanged at $1.0451.
New Zealand’s dollar was little changed at 75.67 yen, after reaching 75.89 yesterday, its strongest since September 2008. It declined 0.2 percent to 83.63 U.S. cents.
The so-called Aussie may climb toward 100 yen and New Zealand’s dollar may advance to 80 yen over the first quarter, Vrondas said.
Japan Inflation…”
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