MarketWatch: Dollar edges higher as traders adjust positions ahead of Fed: Tuesday September 15, 2015

Dollar Lower Against Yen After BOJ Stands Pat

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Published: Sept 15, 2015 1:22 a.m. ET

By Hiroyuki Kachi

TOKYO–The dollar drifted lower against the yen in directionless Asia
trade Tuesday, as the Bank of Japan’s decision to stand pat led to
buying of the Japanese currency.

The greenback fell to as low as Y119.90 before bouncing back to Y120.08
around 0450 GMT. That compared with Y120.23 late Monday in New York.

The U.S. currency was flat against the euro, which was at $1.1316
midday from $1.1315 late Monday.

The WSJ Dollar Index, a measure of the dollar against a basket of major
currencies, was down 0.02% at 88.18.

Earlier in the session, investors largely remained sidelined ahead of a
key interest-rate decision by the Federal Reserve on Thursday. Many
Tokyo-based currency market participants said the Fed will likely
decline to raise short-term rates at its closely watched meeting, given
uncertainties over growth in China.

Despite the wait-and-see mood, however, the greenback started easing
following the BOJ’s decision to keep its monetary policy unchanged.

“To be honest, I didn’t expect this much of a reaction,” said Takuya
Kanda, senior researcher at Gaitame.Com Research Institute. He said he
had felt expectations for BOJ easing were mounting from earlier this
morning, as indicated by a rise in the benchmark Nikkei Stock Average.

After rising 2.0% in mid-morning, the Nikkei trimmed most of its gains,
and was up only 0.2% immediately after the BOJ decision. The index was
last up 0.9%.

As widely expected, the Bank of Japan’s nine policy board members voted
8-1 to maintain the policy of buying assets at an annual pace of Y80
trillion. The BOJ last raised the purchase amount in October.

Investors now await comments by BOJ Gov. Haruhiko Kuroda who is set to
explain the policy decision at a news conference scheduled for 0630
GMT.

Mr. Kanda said optimistic comments from Mr. Kuroda may encourage
yen-buying, while a more cautious stance on inflation and the future of
the economy may raise hopes for monetary easing and weaken the yen.

The Australian dollar was weaker at $0.7124 and Y85.52 midday from
$0.7138 and Y85.82, respectively.

The Australian currency gained earlier in the session as investors
viewed the country’s new prime minister as positive. Malcolm Turnbull,
a 60-year-old former investment banker, will succeed Tony Abbott.

But the Aussie trimmed gains and then turned down after the Reserve
Bank of Australia issued the minutes of its Sept. 1 policy meeting, at
which it maintained a neutral tone on the outlook for interest rates.

In other currency trade, the euro was at Y135.88 from Y136.08.
Interbank Foreign Exchange Rates At 00:50 EST / 0450 GMT Latest Previous %Chg
Daily Daily %Chg Dollar Rates Close High Low 12/31 USD/JPY Japan 120.07-08 120.
23-24 -0.13 120.65 119.91 +0.30 EUR/USD Euro 1.1314-17 1.1316-19 -0.02 1.1331 1
.1302 -6.47 GBP/USD U.K. 1.5425-27 1.5426-28 -0.01 1.5435 1.5417 -0.98 USD/CHF
Switzerland 0.9678-82 0.9681-85 -0.03 0.9693 0.9670 -2.65 USD/CAD Canada 1.3259
-64 1.3262-67 -0.02 1.3267 1.3250 +14.11 AUD/USD Australia 0.7120-24 0.7136-40
-0.22 0.7167 0.7122 -12.84 NZD/USD New Zealand 0.6310-16 0.6327-33 -0.27 0.6343
0.6310 -19.01 Euro Rates EUR/JPY Japan 135.85-89 136.04-08 -0.14 136.43 135.81
-6.26 Source: Tullett Prebon

Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com

(END) Dow Jones Newswires

September 15, 2015 01:22 ET (05:22 GMT)

MarketWatch Article Source Here.

As of: Tue Sep 15 16:30:03 MDT 2015