USD/JPY sitting at Three Week Low of 104 Before Fed Speeches

The dollar traded near the lowest in three weeks against the yen before Federal Reserve policy makers speak this week as investors weigh the outlook for reductions in monetary stimulus.

The Bloomberg Dollar Spot Index dropped on Jan. 10 by the most in almost three months after a U.S. government report showed jobs rose less than the most pessimistic projection in a Bloomberg News survey, triggering a slide in Treasury yields. Japan’s markets are closed today for a national holiday.

“There is the potential for the market to run with a negative U.S. dollar theme for a while,” said Imre Speizer, an Auckland-based market strategist at Westpac Banking Corp., Australia’s second-biggest lender. “The market may expect further related weakness in the January payrolls number.”


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