Yesterday, the BoE’s news has thrown a split-decision and gave a fresh blow to the sterling. The sterling went down by 0.8% against the dollar and 0.2% against the Euro and 1.3% against the yen.
Yesterday, the Japanese currency market was fully energized. The Yen market had full scope to recover itself from the earlier losses. Previously, the Yen was under real pressure. It had undergone a lot of stress after the Bank of Japan’s decision regarding the interest rates holding on to 0.25%. The investors were selling the yen since it was low-yielding currency to buy the high-yielding currencies like the Euro and the dollar. The yen started its recovery with the Australian dollar. The Yen picked up against the Aussie dollar by 1.8% and the credit goes to the weak Australian CPI inflation data.
The yen rose 1.1 per the Euro and was up 0.5 per cent to Y121.05 against the dollar. The he dollar rose to 0.5 per cent to 1.2960 against the Euro.
Meanwhile the low-yielding Swiss franc, which is also used as a funding currency in carry trades, came under pressure. The Swiss franc dropped 1.6 per cent to Y96.78 against the yen and hit an eight-year low of SFr1.6229 against the Euro.
Now it’s the turn of Swiss franc to take chance to recover.
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