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USD/JPY Near 97 as Fed Seen Holding Easing

The dollar fell versus the yen for a fifth day, the longest losing streak since September, on speculation the Federal Reserve won’t slacken its bond-buying program to cap borrowing costs as the economy loses momentum.

The greenback was 0.2 percent from a almost two-week low against the euro before a report today forecast to show U.S. private employers added the fewest jobs in six months. Australia’s dollar fell for a second day versus Japan’s currency as Chinese data showed manufacturing growth slowed in the South Pacific nation’s largest trading partner.

“The Fed will probably be happy to maintain the current rate of asset purchases and not change the language because of the recent soft patch in the data,” said Stan Shamu, a markets strategist at IG Markets Ltd. in Melbourne. “We’re seeing a little weakness in the dollar.”

Bloomberg [1]

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