The yen that slipped against other major currencies in early Asian deals on Tuesday rebounded after the Bank of Japan decided to keep its benchmark interest rate and stimulus programs unchanged.
During the monetary policy meeting, the central bank's policy board retained the benchmark uncollateralized overnight call rate at 0-0.1 percent as expected. There was no announcement of additional stimulus this month. The asset purchase and credit facility were unchanged at JPY 30 trillion and JPY 35 trillion respectively.
The bank maintained its economic view, saying "Japan's economic activity has shown some signs of picking up, although it has remained more or less flat."
After hitting a 4-day low of 81.87 against the US dollar at 9 pm ET, the yen rebounded. As of now, the yen is worth 81.41 per dollar with 81.2 seen as the next upside target level.
The yen is currently worth 129.60 against the pound and 106.90 against the euro, compared to 4-day lows of 130.27 and 107.49, hit respectively in early deals. If the yen gains further, it may likely target 106.1 against the euro and 129.0 against the pound.
The yen that slipped to a 4-day low of 89.42 against the franc at 9:55 pm ET reversed its direction thereafter. At present, the yen is worth 88.97 against the franc and the next upside target level for the Japanese currency is seen at 88.4.
Against the Canadian dollar, the yen is now worth 81.75, compared to an early Asian session's 4-day low of 82.20. On the upside, 81.4 is seen as the next target level for the yen.
After hitting 4-day lows of 84.66 against the Australian dollar and 67.37 against the New Zealand dollar in early Asian deals, the yen gained. As of now, the yen is worth 83.95 against the aussie and 66.77 against the kiwi. If the yen advances further, it may likely target 83.6 against the aussie and 66.5 against the kiwi.
Australia's business conditions improved modestly in March, along with a jump in confidence, a survey by the National Australia Bank (NAB) showed today. The business conditions index rose to 4 in March from 3 in February. The business confidence index advanced to 3 from 1 in the previous month.
Investors now focus on the European session, in which Swiss unemployment rate for March, German trade data, French industrial production and U.K. DCLG house price index - all for February are expected to influence trading.
The U.S. wholesale inventories for February is due at 10 am ET.
by RTT Staff Writer
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