2m 17s: Lenght

The Japanese yen extended losses against the US dollar in the Asian trade today. Traders are betting on the US dollar’s strength. Solid US economic indicators assure markets that the US Federal Reserve could raise the funds rate in the near future. Yesterday, the survey from Conference Board confirmed that the US economy is ready for tighter monetary policy. The consumer confidence index surged in August to 101.1, the highest score for the latest 11 months. Meanwhile, investors are anticipating a positive ADP National Employment Report that will shed light on employment trends in the US private sector. The dynamic of the dollar/yen pair reflects market sentiment on the US currency. It lifted the dollar above 103.00 yens overnight in the Asian session. In the European premarket, the US dollar climbed to 103.25 versus the yen, a fresh one-month high. Speaking about the dollar/yen pair, experts are also considering traders’ sentiment on the Japanese yen. The Bank of Japan is widely expected to announce resolute measures soon. Being aware of the sluggishness in the economy, Japan’s central bankers are worried ahead of a policy meeting next month. The deflationary mindset and economic conditions put pressure on the Bank of Japan that could expand the stimulus program in September. Awaiting this move from the regulator, Japan’s stock market rocketed 1% today, closing at the highest level since August 12. A weaker yen also helps Japanese exporters. The Nikkei Stock Average ended up almost 2% in August. However, investors are confused as the government’s comments often deviate from actual moves. The Bank of Japan has not changed its monetary policy despite the urge to add monetary stimulus. If the regulator puts everything on hold at the meeting in September, the Japanese yen is set to strengthen again. https://www.instaforex.com