Yen Surges After BOJ Trims Bond Purchases

The U.S. dollar advanced against most major rivals Tuesday, but dropped against the yen after the Bank of Japan trimmed its purchases in long-dated Japanese government debt.

The ICE U.S. Dollar Index DXY, +0.26% was up 0.2% to 92.575, trading around its highest level since Dec. 28 and on track for a third straight rise. The broader WSJ Dollar Index BUXX, +0.19% edged up 0.2% to 86.07.

Against the Japanese yen USDJPY, -0.42% however, the buck fell, buying ¥112.66, compared with ¥113.09 late Monday in New York.



Its other majors rivals, including the euro, the British pound, the Canadian dollar and Swiss franc, all weakened against the greenback in Tuesday trading.

The euro EURUSD, -0.3844% fell to $1.1929 from $1.1968, while Britain’s pound GBPUSD, -0.3169% dipped to $1.3516 from $1.3568.

Versus the Canadian currency USDCAD, +0.3945% the dollar bought C$1.2455, up from C$1.2420 late Monday. Against the Swiss franc USDCHF, +0.6242% the buck fetched 0.9835 francs versus 0.9772 francs on Monday.

via MarketWatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza