The U.S. dollar slipped ahead of a meeting of the U.S. Federal Reserve Committee that will begin Tuesday (07/26/2016) a night later. Meanwhile, the Yen strengthened in Japan hope the existence of additional easing of the Central Bank of Japan (of the BoJ) this week.
The Fed will maintain its monetary policy, but investors will still pay attention to the results of the FOMC meetings for the sake of getting signals as to when the tightening of monetary policy will be implemented this year.
On Monday, a number of analysts have indicated that the market does not see any chance for the U.S. central bank to raise interest rates this week, but for the increase in December, the percentage of the estimated 56 percent rise from the previous 48 percent on last weekend.
The dollar index, which tracks the Greenback's strength against six other major currencies, dropped 0.1 percent to 97,228, below the level of the 97,569 high reached in March.
USD/JPY Slipping
The U.S. dollar slipped 0.3 per cent against the Yen at 105.23 figures, while the Euro faded 0.5 percent to 115.66 yen. Economists surveyed by Reuters, who, estimates that of the BoJ will take steps in easing the two-day meeting that ends later Friday.
The Government of Japan will also hold a package of easing by 20 trillion yen despite public spending will be much less than the amount specified. A report from Nikkei today also mentioned, Japan is likely to inject funds amounting to 6 trillion yen through fiscal policy directly in Japan's economy in the next few years.
"For yen, according to our more important and most important is the ' levels ' or mamizu flow of real fiscal package than the sum total of which is indeed easy to swell," said Ray Atrill, Chief Forex Strategist at bank NAB. "The bigger (the fiscal fund injection), then the stock market will be more supported and more and weaken the yen."
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