FX Update: The dollar had yen have rallied
FX Update: The dollar had yen have rallied against most other currencies, with the latter outperforming as stock markets in Europe and Asia sputtered, driving USD-JPY back under 112.00 and down from the four-month peak seen at 112.40 late yesterday. The biggest movers were EUR-JPY, GBP-JPY and AUD-JPY, which were all registering between 0.4% and 0.5% declines heading into the New York interbank open. Aside from wobbling global stock markets, position trimming ahead of Japan's golden week holiday break may have been a factor in underpinning the Japanese currency, especially with today bing a "gotobi" date in Japan (a date multiple of five, around which financial transactions are grouped and settled). The BoJ, meanwhile, left rates unchanged, as widely expected, while affirming it will keep rates accommodative at least through to the spring of next year, refraining from committing to further stimulus while signalling that further measures could be deployed if necessary. Elsewhere, the narrow trade-weighted USD index lifted to a fresh 22-month high while EUR-USD concurrently printed a new 22-month low, at 1.1134. The pairing has declined for a third straight day, breaching major trend lows seen in March and early April at 1.1176 and 1.1183. The ECB's monthly bulletin today flagged downside risks to Eurozone growth output. Cable and AUD-USD also forayed to new trend low terrain. Ahead today, analysts expect U.S. data to be dollar positive: March durables are expected to rise 0.2% versus the previous outsized fall of 1.6%, while weekly jobless claims are seen steady at a near 5-decade low of 192k.