Yen Set for Weekly Decline Against Yen Before Confidence Data 

The yen was set for a third weekly slide as gains in stocks and expectations for continued economic stimulus around the globe trimmed demand for haven assets.

The yen slid 0.1 percent to 100.07 per dollar as of 6:56 a.m. in London after reaching 100.31, the weakest since Sept. 11. Japan’s currency reached 134.94 per euro, the least this month, before at 134.69, down 0.1 percent. It has lost 1 percent versus the dollar this week, and was down 1.7 percent against the euro, set for the biggest five-day slide since September.

“The market was relieved after Yellen’s testimony that tapering will not start immediately,” said Tsutomu Soma, a manager of the fixed-income business unit at Rakuten Securities Inc. in Tokyo. “The market is turning risk-on with the yen falling beyond the 100 level. Dollar-yen could extend gains to around 105 into year end.”

The yen yesterday breached the 100 level for the first time in two months and was poised for weekly declines against all its major peers before the Bank of Japan meets next week and following data that showed growth slowed. The dollar is poised for its first weekly drop versus the euro this month after Janet Yellen, the nominee to head the Federal Reserve, said easing measures won’t be removed too soon. Currency volatility retreated and Australia’s dollar climbed.

Rate Range Projection by Bank

 Next  week           99.00 -  101.50

Next 3 months      95.00 - 105.00