News Tech: The Japanese yen resumed its slide on Monday morning, after the Bank of Japan stepped into the market to defend its implicit yield cap, and bitcoin rose to nearly its highest this year ahead of a week filled with plenty of data to guide markets. The yen fell to as low as 122.78 per dollar, its weakest since December 2015, giving up its mini recovery from Friday when the Bank of Japan did not step in to defend its target.
However, On Monday morning, the BOJ offered to buy unlimited amounts of 10-year Japanese government bonds (JGBs) at 0.25%, after the 10-year JGB yield crept up to a six-year high of 0.245%. “While a risk of near-term correction has risen given the rapidity of its ascent, we expect dollar-yen to remain well-supported at high levels,” said analysts at Barclays, citing monetary policy divergence and the negative impact from higher commodity prices on Japan`s terms-of-trade.
Rising commodity prices have weighed on the yen in recent weeks, but provided a strong boost to commodity currencies. The Australian dollar he traded at $0.75115 last week where he held near a four-month high. Meanwhile, the Canadian dollar traded at 1.2496 per dollar, just below Friday’s two-month high. Australian currency watchers will also be eyeing the Australian budget on Tuesday.
I don’t think it will have a big impact. In the cryptocurrency market, Bitcoin did pretty well at $46,800 after jumping to $47,766 in early trading, its highest since early January. Ether, his second largest cryptocurrency in the world, had him at $3,289.