Forex News, Fundamental Analysis Forex
October 29, 2012 @ 10:08 am

Yen holds steady ahead of BOJ policy meeting

Yen was little changed against the dollar so far in Monday trading. Traders are waiting on the sidelines ahead of a key Bank of Japan policy meeting on Tuesday when the bank is expected to take further steps to ease policy in an effort to boost waning growth in the Japanese economy.

Lately Japanese government officials have been putting pressure on the central bank to continue pumping in cash into the economy until its 1 percent inflation target is achieved.

Stimulus measures are expected to take the form of an increased bond purchase programme by at least 10 trillion yen, or roughly $125 billion.

Early last week the  yen weakened considerably against the dollar as investors were taking bets against it as they position themselves for the BOJ easing, however this factor has pretty much already been factored in and yen has since steadied.

Helping support yen from a further decline is the fact that dollar gains are limited as doubts still exist about the strength of the United States economy, after Friday’s better-than-expected GDP data.

Figures showed growth increased at a 2 percent annual rate in the third quarter, slightly above a 1.9 percent forecast, but still short of what economists believe is needed for a substantial rise in employment.

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