After advancing for two consecutive days, Japanese Yen has dropped on Friday. The Yen’s rise, the largest in the last two month, has been affected by the differences in monetary policy between United States and Japan.


The momentum that Yen had until Friday weakened yesterday, proving the predictions of Pacific Investment Management wrong. The company predicted further rise of the Japanese currency, or at least maintaining the reached peak level. The decline in United States jobless claims picked up Treasury yields, and interest rates are more likely to rise later in 2015. United Stated dollar rose even more, against the main rivals, making the gain on Thursday weeks high.

Since the United States are obviously the only place interest rates will rise, “It’s clear that Japan will maintain its accommodative monetary policy and tapering is not in sight”, Nomura Securities head of currency strategy, Yunusuke Ikeda, stated. He added that the dollar is strong and that is what affects Japan.

U.S. dollar gained 0.1% on the Bloomberg Dollar Spot Index, and is now at 1.190.04. Dollar also rose on Thursday, by 0.3%.

After the earlier 0.2% decline, the Japanese Yen remained steady at 119.22 per one dollar. The record values since 20th of February was recorded on Thursday, and it was 118.33.

The Reserve Bank of Australia’s added cuts of interest rates, together with the slump in commodity prices, will drop the AUD. Investment manager, Adam Bowe, posted a report that indicated such scenario, influenced also by the slowing Chinese economy. Australian dollar fell 0.3%, and is now 78.02 U.S. cents