Yen Set for Best Week Since 2009 as Fed Outlook Overtakes BOJ
- Japan's currency erased losses spurred by negative rate policy
- Odds of Fed rate increase fading amid global market turmoil
The yen is set for its biggest weekly advance against the dollar in more than six years amid concern global economic growth is slowing as traders cut bets on whether the U.S. will raise interest rates this year, overshadowing the impact of Japan adopting negative rates.
The Japanese currency has more than recouped the tumble triggered when the Bank of Japan last week unexpectedly decided to charge lenders for some of their excess reserves held at the central bank. Prospects for higher interest rates in the U.S. are receding on speculation the Federal Reserve can’t tighten monetary policy further against a backdrop of global turmoil. The euro is heading for its biggest weekly advance since 2011 even as the European Central Bank reviews its monetary stance.