Forex News
May 24, 2013 @ 8:29 am

Yen rebounds against dollar after Kuroda comments

The yen gains against the dollar in early Friday trading, reversing losses after the Bank of Japan governor Haruhiko Kuroda made remarks that the current stimulus by the central bank remains sufficient.

USD/JPY hit 101.07 by late Asian trading hours before consolidation around 101.75, down 0.2 percent.

The dollar is likely to remain steady without further big declines until the release of key US data later in the day.

US durable goods orders will be announced. Forecasts by analysts are for an improvement in the data. Should this be so, this will lift the dollar, otherwise it will remain weak.

However, expectations of tapering of the Fed’s bond buying program will keep dollar supported.

Fed Chairman Ben Bernanke in testimony to the US Joint Economic Committee on Wednesday, he said a decision to slow down the Fed’s bond purchase program could be taken in the “next few meetings” if economic data continued to improve.

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