The Yen recouped its losses after having reached a four-week low against the U.S. Dollar. This came about after the Bank of Japan announced it would extend its asset-purchasing program. However, investors in the Forex are speculating that the increase in stimulus will do very little for the country’s economy. The Yen rallied versus the majority of its peers despite the fact that the bank’s policy makers added $127 billion in stimulus, thereby following in the footsteps of the U.S. Federal Reserve and the European Central Bank. According to reports, the effects from the BOJ’s actions were limited given the escalating tensions between Japan and China over the ownership of certain islands in the region.
The Canadian Dollar fell against most of its world currency counterparts after crude oil declined on a lack of faith that the world’s largest central banks will be able to spur economic growth with recent stimulus efforts. The Loonie continued to drop against the U.S. Dollar following a release confirming that U.S. oil stockpiles increased by 8.53 million barrels last week. The live Forex currency remained under pressure as crude oil slumped 3.6% to $92.21 a barrel on the New York Mercantile Exchange.
In the U.S., the greenback traded mixed as economic data showed that new home construction climbed by 2.3% last month while mortgage rates remained at an all-time low. Furthermore, official figures from the National Association of Realtors confirmed that existing home sales rose 7.8%. The Euro rallied versus the greenback despite the release of better than anticipated U.S. economic reports.