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Major currencies have stabilized before the Fed and Bank of Japan meetings

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Major currencies have stabilized before the Fed and Bank of Japan meetings

Major currencies have stabilized before the Fed and Bank of Japan meetings
September 20
14:30 2016

On Tuesday the central currencies are stable and investors are waiting for the outcome of the US Fed and Bank of Japan meetings. According to rumors, the country’s regulator is planning to take some radical steps to change the program of its policy easing.

In the early afternoon on Tuesday the US dollar was steady on the record of 101.77 yen after it had fallen by 0.4 percent the previous day.

Recently, the representatives of the Bank of Japan noted that there was a zone to continue the rate reducing. They did these statements despite the criticism about the harm that they caused to financial institutions and the economic sentiment. According to recent reports, this week the Japanese Central Bank can put negative interest rates at the head of its monetary policy after the meeting.

The Japanese currency has suddenly jumped on the background of some meetings of the Central Bank in the recent past due to the fact that the regulator’s decision caused a wave of disappointment in the markets.

Koji Fukaya from FPG Securities said: “The Bank of Japan may not go to the softening of its policy. In this case the dollar / yen pair may test the level of 101 or 100 yen.”

“Hawkish rhetoric” of a number of Fed officials has been intensified in recent years. There were allegations that there was nothing to prevent the regulator from the rate increasing in the near future. Most experts agree on the idea that the Central Bank will leave the rate unchanged this week. However, some market participants expect that the Central Bank will give a clear hint that it is ready to increase the rates.

This could support the dollar, while most of the other world’s central banks continue to conduct the easing of the policies.

On Tuesday morning the dollar index was at around 95.880, moving away from the 2- week highs of 96.108 that were reached on Friday.

The euro is steady at $ 1.1171 after a 2-week low of $ 1.1149, which was reached on Monday.

The pound sterling has risen to$ 1.3039. It is slowly recovering from a monthly minimum of $ 1.2996, which it reached last week.

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