(July 18 Reuters) The yen hovered near 3-1/2 week lows on Tuesday on a combination of growing expectations of monetary easing by the Bank of Japan, a broad recovery in risk appetite and speculation about M&A related yen selling.
The New Zealand dollar was one of the big movers in early Asian trade, with the kiwi falling sharply after the Reserve Bank of New Zealand stepped up efforts to impose fresh curbs on a hot housing market - a move seen as raising the chance of a rate cut.
The yen traded at 106.20 yen to the dollar JPY, having fallen to as low at 106.33 in early trade, its lowest level since June 24.
It is currently supported at its 55-day moving average at 106.34 but a break of that level could prompt traders to test its June 24 low of 106.87.
Speculators have been betting that the Bank of Japan will further ease its policy at the rate review on July 29, as the government in Tokyo prepares new fiscal stimulus to boost the economy.
Traders are also unwinding their safe-haven bids in the yen as the initial shocks from last month's vote by Britain to leave the European Union ebb, with U.S. shares hitting record highs partly because Brexit has helped to quash expectations of near-term rate increases by the Fed.
Click on the link below to see the full story from Reuters: (by Hideyuki Sano)