USD/JPY at 101.25 as U.S. Yields Fall

The yen was stronger versus all 16 major peers before the Bank of Japan concludes a two-day meeting today amid forecasts it will refrain from expanding stimulus.

The currency was near a more than three-month high against the greenback as the U.S. yield premium over Japan fell before the release of the minutes of the Federal Reserve’s April meeting. New Zealand’s kiwi touched the lowest this month after Fonterra Cooperative Group Ltd. said whole-milk powder prices declined for a seventh auction. Australia’s dollar held its sharpest loss in two months after consumer confidence dropped and iron ore prices fell to the lowest since September 2012.

“Even if the Bank of Japan is going to do something new, it’s probably some time away,” said Kazuo Shirai, a trader at Union Bank NA in Los Angeles. “The market seems to want to try and take dollar-yen lower.”

Bloomberg

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