USD/JPY Steady Around 103.30 on Fed Tapering Speculation

The dollar was steady against the yen during Asian trading Tuesday as investors continued to mull the likely timing of the Federal Reserve’s tapering of its asset-purchase program following last Friday’s stronger-than-expected U.S. jobs report.

Trading was cautious after a string of speeches by three Federal Reserve presidents suggested the central bank could start scaling back its $85-billion-a-month stimulus program as early as this month. The next Fed meeting will take place next week.

“It’s still hard to tell when the Fed may begin its roll-back,” said Kengo Suzuki, forex strategist at Mizuho Securities, adding that he still only saw a small chance of the Fed trimming its measures beginning in December. “I’d say there’s a 10% chance the Fed will begin tapering in December, a 50% chance it will do so in January and a 40% chance in March,” he said.


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