The
yen climbed against all of its major counterparts as the Bank of Japan
(8301)'s second round of easing in two months disappointed some
investors expecting more.
The BOJ expanded its asset-purchase program by 11 trillion yen ($138
billion) to 66 trillion yen, the central bank said after a policy
meeting today. The Nikkei newspaper reported earlier that the BOJ may
increase the program by 10 trillion yen. The Dollar Index (DXY) was near
a seven-week high amid demand for refuge assets as Atlantic superstorm
Sandy ravaged the American Northeast coast and before reports that may
show Europe's debt crisis is damping growth.
The 10 trillion-yen increase was seen as a minimum expansion, and the
failure to reach 15 trillion yen is very disappointing for markets, said
Yunosuke Ikeda, head of Japan foreign-exchange research at Nomura
Securities Co., the nations biggest brokerage. The yen is being bought
as risk sentiment is worsening in part because of Sandy.
The Japanese currency reached 79.28 per dollar, the strongest since Oct.
22, before trading at 79.43 as of 6:13 a.m. in London, 0.5 percent
higher than yesterday's close. The yen gained 0.6 percent to 102.41 per
euro. Europe's common currency was little changed at $1.2899.
Support
|
Resistance
|
|
USDJPY
|
79.580
|
79.896
|
79.392
|
80.024
|
|
79.264
|
80.212
|
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