Investing.com - The dollar ended the day lower against the yen on Friday after Japan’s finance minister voiced concerns over the weaker yen amid concerns over its impact on plans to revive growth.
The yen gained ground after Japanese Finance Minister Taro Aso voiced concerns over the weaker yen, saying the speed of the currency’s recent decline against the dollar was “too fast.”
USD/JPY down 0.33% to 117.77 in late trade, after falling to lows of 117.36 immediately following the remarks. On Thursday the pair rose to highs of 118.96, the most since August 2007.
The yen has weakened broadly since the Bank of Japan unexpectedly expanded its stimulus program late last month. In contrast the Federal Reserve wound up its asset purchase program last month is expected to start raising rates around September 2015.
Japan’s Prime Minister Shinzo Abe dissolved parliament on Friday, clearing the way for elections to be held on December 15.
The decision came after data earlier in the week showed that Japan unexpectedly fell into recession in the third quarter, with the economy contracting by an annualized 1.6%, following a 7.3% decline in the previous quarter.
The prime minister has also announced plans to delay a planned sales tax hike due to take place next October after an increase in April of this year played a part in plunging Japan into a recession.
Elsewhere, the euro fell sharply against the yen on Friday after European Central Bank President Mario Draghi indicated that it is moving closer to quantitative easing
EUR/JPY fell 1.52% to 145.97 in late trade.
The drop in the euro came after Draghi warned that inflation expectations were declining to levels that were very low and said the ECB is ready to expand its stimulus program to raise inflation and inflation expectations as quickly as possible
The annual rate on inflation in the euro area was 0.4% in October, well below the ECB’s target of close to but just under 2%.
In the week ahead, the U.S. is to release a string of economic reports on Wednesday ahead of Thursday’s Thanksgiving holiday, including data on unemployment claims and durable goods orders. Tuesday’s speech by Bank of Japan Governor Haruhiko Kuroda will also be closely watched.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 24
Markets in Japan are to remain closed for a national holiday.
Tuesday, November 25
The BoJ is to publish the minutes of its latest policy meeting, which contain valuable insights into economic conditions from the bank’s perspective.
Later in the day, BoJ Governor Haruhiko Kuroda is to speak; his comments will be closely watched.
The U.S. is to release revised data on third quarter gross domestic product and a report on consumer confidence.
Wednesday, November 26
The U.S. is to release a flurry of data ahead of Thursday’s holiday, including reports on durable goods orders, unemployment claims, personal income and spending, as well as reports on new and pending home sales and revised data on consumer sentiment.
Thursday, November 27
Markets in the U.S. are to remain closed for the Thanksgiving Holiday.
Friday, November 28
Japan is to produce reports on inflation, household spending, retail sales and preliminary data on industrial production.