On Wednesday, the US dollar has continued decreasing vs the yen on the yesterday's announcement of bond buying reduction by the Bank of Japan which fueled rumors about the possible cancelation of financial incentives this year.
The US dollar-to-yen exchange rate has decreased by 0.64% today to 111.94. During the session the rate even reached 111.77 being the bottom since December 1.
The yen strengthening was driven by the Bank of Japan which cut the volume of bond redemption by 5%, intending to harmonize monetary policy.
Besides, the yen rebounded against the euro too. The EUR-JPY dipped 0.63% to 133.62. The European currency against US dollar has been at the low over the past 6 weeks. In particular, EUR-USD changed hands at 1.1939. The yesterday session saw a 0.33% decline of the euro.
The recent euro weakening is explained by investors' intentions to fix the profit after its hike in early 2018 on fears that the European Central Bank may try to knock down prices for the currency ahead of the January meeting.
US dollar index (DXY) dropped 0.1% to 92.14, from the weekly ceiling of 92.36.
As the Federal Reserve is likely to keep heading for upward revision of interest rate this year, US dollar has remained in good demand.
The sterling to US dollar weakened 0.21% to 1.3510. AUD-USD pair stayed almost unchanged, changing hands at 0.7824.