Posts Tagged ‘Yen’

The yen rose more than 1 per cent against the dollar and the euro on Tuesday (July 26), as traders dialled back expectations of how much new stimulus Japanese authorities will inject into an ailing economy.

The Bank of Japan is expected to announce expanded asset purchases and a rate cut further into negative territory at the end of its policy meeting on Friday (July 29).

Meanwhile the government is compiling a spending package that some sources have estimated could be worth up to 20 trillion yen. But a Nikkei report on Tuesday (July 26) said direct fiscal stimulus into the economy would amount to about 6 trillion yen over the next few years.

(more…)

Less than two months after Goldman Sachs Group Inc. softened its short-term euro forecast after a central-bank policy meeting, the bank is doing the same with the yen.

Japan’s currency is likely to strengthen until Bank of Japan Governor Haruhiko Kuroda rolls out or signals additional stimulus measures, analysts led by Robin Brooks, the bank’s chief currency strategist, wrote in a note to clients on Monday.

(more…)

One of the dominating forex news stories centres around the relationship between the US dollar and the Japanese Yen. We have seen a rally, albeit perhaps briefly, against the dollar when online trading analysts learned that the Bank of Japan has not modified their domestic monetary policy as was moderately expected.

This decision was defended by the governor of the central bank when he stated that there is less volatility in the government bond markets than previously. This announcement led to the dollar declining 1.78 percent in comparison to the Yen during the American trading session on Tuesday. Some online traders and forex brokers believe that this leveraging of Japan’s currency and the resultant decline in equities may attract investment from abroad.
(more…)

Weakened Euro continues

The recent financial turmoil for the Euro continues. Despite extensive funding programs from the European Central Bank, which was presented on March 1st, the EUR currency fell further against both the Japanese Yen (JPY) and the American Dollar (USD).

A lot of efforts

The efforts to curb the crisis in the Euro-area is (more…)

IMF recently told the press they fail to see any underlying fundamental factors giving the Yen any strength. According to International Monetary Fund, the current value of the Yen reflects long-term fundamentals. So basically, they mean that the Yen is still overvalued against USD and rest of the G7 countries.

Surprising G7 intervention against Yen

Last week, seven central banks from the G7 countries joined together in an effort to weaken the Yen. After the earthquake, the Japanese Yen has been traded stronger, in contrast to what you would expect.

Currency traders also claim that the Yen strengths is partly due to corporations, insurance firms and private people sending money back to Japan.

What do investors buy in Japan right now?

It seems like Japanese investors mainly focus on the (more…)

As we previously predicted it became inevitable for Bank of Japan (BOJ) to hold back its plans for intervention. JPY/USD went from 83 yen per dollar to 85.47 shortly after the intervention.

Strong yen – harmful for Japanese economy says Noda

Early this morning (9:30 ET) Yen reached a new 15-year high. This time, Bank of Japan was quick to intervene in the currency markets, selling yen in exchange for us dollars, after a week of possible intervention warnings. This intervention was made to counter the adverse impact of the strong yen, and was the first official intervention in the currency market since 2004.

“We conducted the intervention in order to avoid excessive movement in the currency market. The Bank of Japan will continue to (more…)

The yen surged to 15-year low on Friday against the dollar as fading confidence for the global economy have risen demand for the Japanese currency.

Will Bank of Japan intervene?

The latest move raised currency speculation of the Japanese central bank intervening in the forex market, which is rather uncommon (more…)

The outlook for US Dollar have been going down, down and down against the Yen. Is it time for a turn-around soon?

New Economic Slowdown?

After the latest key U.S economic data was released, investors was first seriously concerned about the US economy showing, when July showed 27 % slowdown of previously owned U.S homes. But later, many forex investors insted became worried about the world economy instead and dollar started to rise again against many major currencies.

At the same time, Nikkei 225 rose to a 15-month low, while the Japanese currency become even stronger – 84 yen per USD. Yen is currently at its strongest value against USD this decade. Lets see how things move forward in the end of the week.

Japanese currency are becoming more interesting for carry traders, while forex experts estimate a set-back over the next months.

Yen as a carry trade

During much of the beginning of the century, yen was the main carry trade currency among international forex investors and traders. This mean it was sold by investors because its yield was so negligible, and the proceeds were invested in higher yielding currencies, such as Australian dollar (AUD) or Sterling (£). However, in the middle of the financial crisis, the yen was displaced by the US dollar, in the light of the slashed American interest rates.

Shift in lending rates

It’s now cheaper to borrow money in Yen then (more…)