Yen flounders near four month low, Fed in spotlight

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Yen flounders near four month low, Fed in spotlight
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The yen languished near a four-month low against the U.S. dollar and a 16-year trough against the euro on Wednesday, a day after the Bank of Japan's widely...

SINGAPORE - The yen languished near a four-month low against the U.S. dollar and a 16-year trough against the euro on Wednesday, a day after the Bank of Japan's widely anticipated decision to end its negative interest rate policy.

"I think the focus is again around 152 levels," said Christopher Wong, currency strategist at OCBC. Wong said the move for dollar/yen in the near term will be more a function of U.S. rates, with the Federal Reserve decision due later on Wednesday. "The carry trade versus the major currencies continues to be in play and is expected to continue for a while," Hathorn said. "This means the yen is likely to see further weakness, especially if the other central banks continue to delay cutting rates."

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