The yen traded near its highest in six weeks against the euro before the Bank of Japan sets policy today amid speculation the central bank will delay expanding stimulus.
The yen held its best start to a year against the dollar since 2010 as analysts push back forecasts for additional easing from BOJ Governor Haruhiko Kuroda. The pound traded near a one-year high against the euro before data forecast to show U.K. unemployment fell to the lowest in 4 1/2 years. Australia’s dollar gained against all its major peers after a report showed annual consumer price gains quickened more than economists forecast, tempering bets on further interest-rate cuts.
“The risk is that the BOJ’s economic outlook and Kuroda’s statement today will damp market expectations for additional easing,” said Yujiro Goto, a London-based senior currency strategist at Nomura International Plc in London. “I doubt that the BOJ meeting will be supportive for risk appetite” and a weaker yen, he said.
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