The yen touched its lowest this year against the dollar amid receding speculation the Bank of Japan will deliver an early tweak to its yield-curve control policy.
(Bloomberg) — The yen touched its lowest this year against the dollar amid receding speculation the Bank of Japan will deliver an early tweak to its yield-curve control policy.Â
The Japanese currency traded at 138.75 per dollar Thursday, the weakest since November. The yen is the second-worst performer this year among Group-of-10 currencies losing more than 5% against the greenback.
BOJ chief Kazuo Ueda kept policy unchanged at his first meeting as governor in April and has repeatedly said he will continue with easing to achieve the central bank’s price target. Japan’s 10-year yields have edged lower this month, widening the gap with their rising US counterparts and favoring the dollar over the yen.
Ten-year overnight-indexed swaps, commonly used by foreign funds to bet on Japan’s debt have fallen back toward the BOJ’s ceiling for benchmark yields, a sign bets on a policy tweak have subsided for now.Â
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