The Japanese Yen traded steadily in forex against the US. Dollar on Tuesday as a report released by the Bank of Japan did little to affect the market expectations taht the bank of Japan (BoJ) would wait until next year to raise interest rates. In its outlook on Japan's economy and prices, it confirmed that the BoJ's view on monetary policy remains unchanged. The BoJ kept overnight rates steady at 0.25 percent through a unanimous vote. A majority of investors think that the central bank will increase interest rates by half a percent during the first quarter of 2007.
In forex trading with the US. Dollar, the Japanese Yen traded 117.15 Yen which is up from 117.35 Yen. Forex with the Euro saw it decrease down to 149.40 Yen from around 149.50 Yen in late US. trading.
Data which was released earlier in the session showed an increase in the unemployment rate to 4.2 percent from 4.1 percent and household spending fell 6 percent in September from a previous year. Economists have said that these figures may mean that Japanese GDP has decreased and an interest rate hike seems unlikely this year. The Japanese Yen has been affected despite central banks around the world haveing announced that they're increasing their foreign reserves into the Yen.
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