The Japanese Yen continued to advance against its rivals, especially the US Dollar, which fell to a six-week low against the Yen at 111.70, following the Bank of Japan's move of cutting its purchases of government bonds by about 10 billion yen.
The yen also rose against the euro, with EURJPY dropping to its lowest level since Dec. 20 at 133.40. The rise in Japanese bond yields played a role in boosting yen gains after the Bank of Japan move.
On the other hand, the weakness of the US dollar is affected by the movements of other central banks to tighten monetary policies, which may continue to weigh on the US dollar during 2018. And so far, the US interest rate was priced in twice this year, despite expectations of three Federal Reserve rate hikes.
The dollar index remains under pressure, trading at its lowest range since September last year at 92 levels. The dollar remains weak against the euro, with the EURUSD currently hovering near 3-year high levels of 1.20.
Oil continues its strong rally, hitting its highest level since December 2014, boosted by a cut in production deal and expectations of a decline in US crude inventories for the eighth straight week. Oil is currently traded at $ 63.38 a barrel after exceeding an important resistance level at $ 62, and with stability above it would move directly towards the next resistance level at $ 67 a barrel.
