Yen falls on monetary easing predictions

<p>The yen has fallen in forex trading today as investors express caution over Japanese monetary policy.</p>

The Japanese yen fell in value in forex trading today (February 18th) as investors reacted cautiously over plans that would not change the country's monetary policy.

Individuals with knowledge on the matter said the currency is likely to continue to weaken after the G20 failed to criticise the move, but claimed its fall could lose momentum as investors become wary of betting on further weakness.

Saeed Amen, currency strategist at Nomura, said: "The G20 communique did not explicitly single out Japan, which should be relatively positive for dollar/yen in the short term."

Meanwhile, the dollar has risen around 20 per cent against the Japanese currency since mid-November, when the prospect of a new government sparked speculation of aggressive monetary easing.

The greenback rose 0.5 per cent to 93.98 yen in trading to recover from a low of 92.20 hit on Friday and close to a 33-month high around 94.47 set a week ago.

Find out about major individual shares and spread betting strategies at City Index.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.