Yen and Sterlin under Pressure

The “scenarios” to apply even looser monetary policy by the Bank of Japan dragged down the yen [JPY = X] against key competitors in the international financial markets, while at the same time discouraging data on industrial production in Britain have pushed the pound down. The yen has benefited from the “repatriation” of capital in Japan as we approach the end of the fiscal year but the information that the Bank of Japan may move to more relaxed monetary policy next week has pushed the Japanese currency in to a new low against the dollar and euro.

Pressure was found on the pound after the unexpected fall in industrial production in Britain in January. According to information from authoritative sources, the Japanese central bank is oriented to exercise some relaxation of monetary policy in the following week, but disagreements still exist between officials on how to justify such a move. With the Japanese currency in negative territory, the dollar managed to strengthen above 90 yen were the euro remained almost stable over 1.36 against the dollar at a time when the pound [GBP = X] recorded losses for the third consecutive day against the U.S. currency and the euro. Finally, data on the growth of imports and exports in China benefited the currencies of countries that produce raw materials such as the Australian dollar-who ‘climbed’ to a seven week high against the dollar-and the New Zealand dollar, which strengthened to a high of three weeks.