Yen boosted by Japanese exporter flows

The yen edged higher on the dollar earlier today, supported by Japanese exporters’ seasonal flows, after they purchased the yen with their financial year end approaching, reports Reuters.

The dollar fell by 0.3 per cent to 82.97 yen, and the euro dropped by a percentage point to 110.63 yen, edging away from a four-and-a-half month high of 111.43 which it hit on trading platform EBS last week.

Japanese exporters who buy yen tend to be more active towards the month-end, while there has also been extra focus on potential flows of late as the majority of Japanese companies see their financial year finish at the end of the month. Seasonal factors such as these helped spur yen-buying Japanese exporters today, even though some had hedged their foreign exchange exposure already for the coming few months.

The greenback has fallen back slightly after its recent rally against the Japanese currency as profit-taking emerged upon reaching an 11-month high of 84.187 yen earlier in March on the EBS trading platform. The yen has faced pressure since the Bank of Japan’s monetary easing last month, while the dollar has been helped by recent increases in US Treasury yields.