The Bank of Japan’s failure to achieve its inflation target will see the yen rebound to the highest since 2012, reversing the results of its unprecedented stimulus, according to Tokai Tokyo Securities Co.
The yen held gains from yesterday versus most of its major counterparts as declines in Asian stocks and concern about Greece’s ability to complete a debt swap supported demand for the currency as a refuge.
The yen rose against most of its 16 major counterparts before a German report forecast to show a gauge of business confidence dropped for a fifth month, increasing the allure of the Japanese currency as a haven.
The dollar weakened against most of its major counterparts after China’s yuan rose to the strongest level since 1993, fueling speculation the Asian nation is allowing faster gains as Group of 20 leaders meet in Seoul.
The dollar traded near a nine-week high against the yen before a U.S. report that may show payrolls expanded for a second month, adding to signs the recovery of the world’s largest economy is gathering momentum.