Yen Weakens on Chatter of Further Easing

The Japanese yen is falling against the US dollar on Tuesday morning after market chatter circulates that the Bank of Japan may step in with further monetary easing. In mid-February, the Japanese yen fell against the US dollar after the Bank of Japan announced an inflation goal of 1% and said that it was increasing its asset purchase and lending program. The chatter today was that the Bank of Japan is considering more easing in the near future to try in hit the 1% inflation target set forth in February. The USD/JPY spiked 0.5% higher on the rumor, all the way to 83.22. The currency pair is currently trading at 83.10, or up about 0.37%.