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Forex - Yen gains on safe haven buying, BoJ minutes downbeat

Published 11/24/2015, 07:15 PM
Updated 11/24/2015, 07:16 PM
Yen gains on safe haven buying
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Investing.com - The yen gained slightly in Asia on Wednesday after downbeat central bank minutes and data on corporate prices as investors sought safe haven assets after Turkey shot down a Russian jet fighter overnight.

USD/JPY traded at 122.47, down 0.05%, while AUD/USD changed hands at 0.7261, up 0.08%.

Japan is unlikely to hit sustained 2% inflation by fiscal year 2017 as slowing growth in emerging economies and a planned sales tax hike weigh, Bank of Japan board members said in minutes released on Wednesday.

The BoJ held policy steady in October and November, keeping an annual asset purchase target at ¥80 trillion.

The October minutes highlighted policy options that may be taken to spur the economy further a factor that may be further in play as at least one board member said a weaker yen has had a smaller impact than expected.

The corporate services price index for October rose 0.5%, below the 0.6% gain seen year-on-year.

In Australia, third quarter construction work done fell 3.6%, more than the 2.1% drop expected quarter-on-quarter.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.01% to 99.68.

Overnight, the dollar trimmed losses against the other major currencies on Tuesday, despite the release of a weak U.S. consumer confidence report, as data showing that the U.S. economy grew more than initially estimated in the third quarter supported the greenback.

The U.S. Conference Board said its index of consumer confidence sank to a 12-month low of 90.4 this month from a reading of 99.1 in October, whose figure was revised from a previously reported 97.6. Analysts expected the index to rise to 99.5 in November.

The report came shortly after the U.S. Commerce Department said gross domestic product grew at an annual rate of 2.1% in the three months to September, in line with expectations.

Preliminary data initially pegged U.S. growth at 1.5% in the third quarter. The U.S. economy grew 3.9% in the second quarter. The upbeat growth data added to expectations that the Federal Reserve is on track to raise interest rates next month.

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