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Forex - USD/JPY gains as Japanese official says stimulus fine with G20

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Investing.com - The dollar shot up against the yen on Friday after Japanese Finance Minister Taro Aso said Tokyo's stimulus policies have not run into opposition among the country's G20 counterparts.

The Bank of Japan has launched massive monetary easing measure that have weakened the yen to spur more economic growth.

In U.S. trading on Friday, USD/JPY was trading at 99.33, up 1.19%, up from a session low of 98.11 and off a high of 99.36.

The pair was likely to find resistance at 99.94, last Friday's high, and support at 98.11, the earlier low.

Aso comments weakened the yen by fueling sentiments that further easing may be possible in Japan given that the country's move to looser monetary policy hasn't met opposition abroad.

While Japan's policies have been loose that have weakened the currency, the country still battles deflationary pressures, which justifies central bank action.

The yen, meanwhile was down against the pound and down against the euro, with GBP/JPY up 1.09% and trading at 151.60 and EUR/JPY trading up 1.47% at 130.00.

The euro gained after a key European Central Bank policymaker toned down dovish comments.

ECB Governing Council member Jens Weidmann told the Wall Street Journal earlier this week that monetary authorities could cut interest rates if economic and inflation data indicated that policy loosening may be warranted, though he added that monetary policy is already quite expansionary.

By Friday, however, Weidmann reiterated that rate cuts were possible but only if data worsened, which gave investors breathing room to take up positions in the single currency.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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