Dollar Near Month High Versus Yen on U.S., Japan Monetary Policy

Bloomberg (05/9) - The dollar was near a one-month high against the yen amid speculation the Federal Reserve will taper stimulus this month while the Bank of Japan maintains policy. Demand for the greenback was buoyed before private U.S. reports projected to show employment increased and the service industry expanded, adding to the case for the Fed to reduce debt purchases at a policy meeting on Sept. 17-18. The yen held a three-day decline against the euro as economists forecast the BOJ will decide to leave unchanged its unprecedented bond buying at a two-day policy meeting that ends today. “The outlook for the U.S. economy and monetary policy will have a big impact over the dollar in the medium to long term,” said Yuki Sakasai, a foreign-exchange strategist in New York at Barclays Plc. “Our view remains that the Fed will decide to taper easing in two weeks.” The U.S. currency traded little changed at 99.77 yen as of 8:27 a.m. in Tokyo after reaching 99.86 on Sept. 3, the highest since Aug. 2. The yen was at 131.71 per euro after declining 1.5 percent this week to 131.73 yesterday. Europe’s 17-nation currency was little changed at $1.3205. http://www.bloomberg.com/news/2013-09-04/dollar-near-month-high-versus-yen-on-u-s-japan-monetary-policy.html