Yen goes down after BOJ report might push negative rate policy
On Wednesday, the Japanese yen weakened during Asia trade, as traders reacted to a report on probable changes to the Bank of Japan's easing policies, while the New Zealand dollar rebounded after a wider than expected current account deficit.
The currency pair USD/JPY traded at 103.05, rising 0.46%. In Japan, speculation on further BOJ easing was spurred on Wednesday by an article in the Nikkei business daily, informing that the major bank might get down to widening its negative interest rate policy as its asset buying objective, which includes government debt, of about ¥80 trillion hits saturation point.
Earlier, the New Zealand second quarter current account demonstrated a deficit of about NZ$945 million quarter-on-quarter, compared to NZ$410 million observed, and also a NZ$7.38 billion gap year-on-year. The deficit turned to be wider than expected because of a sag in services surplus with New Zealanders traveling overseas. By the way, they spent up to NZ$1.4 billion.