Yen rises across the board

The yen rose across the board on Monday after the Bank of Japan announced aggressive monetary easing measures to halt the yen's appreciation in an emergency meeting because he preferred a program only to expand the money supply.
Investors understand the measures as a symbolic gesture that will do little to stem the currency's rally, moving the pressure the Japanese government, for this act if the yen continues to rise.
Japan's currency touched an intraday high against the dollar and euro after the Bank of Japan governor, Masaaki Shirakawa, said after meeting with Prime Minister Naoto Kan that had not made any requests regarding the bank's monetary policy centralHe also declined to comment on recent exchange rate movements, following the escalation of the yen to 15-year highs against the dollar and a ceiling of nine years against the euro reached last week, which some investors took as a green light to continue buying yen.

Yen rises

"At the end of the day, extending the loan program and economic measures are too timid to produce a dramatic reversal in the rise of the yen," said Roberto Mialich, currency strategist at Unicredit in Milan.
Kan said the government will implement measures to help the economy using its reserves budget of 920,000 million yen.
Earlier, Shirakawa said that the monetary policy measures will be tied to the movement of the yen and stock markets, and that the Japanese currency's rally was due to risk aversion.

The extent of the Bank of Japan official comments encouraged investors to bet on long positions in yen, and that the comments were seen as a sign that Japan's foreign exchange intervention is not imminent.
At 1032 GMT, the dollar fell 0.7 percent on the day at least the day of 84.62 yen according to Reuters data. The dollar sank from the roof of the meeting at around 85.90 yen before Japan's central bank announced its decision.

Yen Japan`s currency

"People are betting on new short positions in the dollar / yen, after having reduced their long exposure before the meeting," said Niels Christensen, senior currency strategist at Nordea in Copenhagen.A trader in London said stop loss orders to sell dollars under the 84.90 yen accelerated the fall of the dollar.
The euro fell to about 1 percent to around 107.50 yen. The single currency lost 0.4 percent against the dollar, 1.2700.Apart from the yen exchange movements in Europe had limited due to closure of markets in London for a holiday.
Against a basket of currencies, the dollar slipped 0.1 percent to 82.842, while the dollars of Australia and New Zealand operated little changed against the dollar.