Yen Gains As Traders Consider Rate Decision [USD/JPY]
4/9/2008 2:40:43 PM The Japanese yen saw modest strength on Wednesday in New York as the Japanese central bank again decided to leave interest rates the same. The yen moved to its highest level in a week against the sterling and gained slightly against the euro as traders in both zones await rate decisions on Thursday.

Earlier in the day, the Board of Governors of the Japanese central bank voted unanimously to keep the rate unchanged for the fifth straight meeting, in line with expectations. The Board retained overnight call rate at 0.5% for the 16th consecutive month. The BoJ has kept rate unchanged at 0.5% since a 0.25% hike in February 2007.

The yen was modestly higher against the euro on Wednesday in New York. The Japanese currency rallied to the top of a near-term trading range before sliding back. The pair moved at 160.93 in the mid-afternoon. The Eurozone GDP, rose 2.2% year-on-year in the fourth quarter of 2007, marking a slower pace than the 2.7% seen in the third quarter, a final report from the Eurostat showed Wednesday.

The yen climbed to resistance in trading against the dollar. The currency moved to as high as 101.49 in the early afternoon and remained near that mark. U.S. traders looked at data showing that wholesale inventories rose 1.1 percent in February, twice as much as expected.

The Japanese currency moved to an eight-day high versus the pound on Wednesday in New York. The yen moved to 200.68 in the mid-afternoon as UK traders await the rate decision from the Bank of England, which is expected to cut rates by 25 basis points. UK industrial production grew 0.3% in February from the previous month, while economists expected just 0.1% increase, the Office for National Statistics or ONS, stated Wednesday.

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