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.

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