Yen Slumps to Six Month Low

The Japanese Yen is facing a lowest slump against the U.S Dollar due to the Japanese elections will take place next month and the existing government will transfer the power, more aggressive monetary stimulus is expected.

Prime Minister Yoshihiko Noda stated that he would be dissolving the parliament to pave a way for the purpose of elections that polls show the Democratic Party of Japan will lose as the Yen weakened against its entire 16 most traded counterparts. On the other side for the first time in four weeks, Euro gained against its U.S peer after touching a two month low. The Bank of Japan (8301) is forecasted to maintain the main interest rate which is zero to 0.1 percent when it meets next week

Rate Range Projection by Bank

Next week
80.00 - 82.00
Next 3 months
78.00 - 85.00