Yen Plunges To New Multi-month Low Against Dollar [USD/JPY]

Posted on May 2nd, 2008 in Currency Analysis, RTT News | No Comments »

5/2/2008 4:16:24 AM The Japanese yen weakened against its major counterparts in early deals on Friday as investors returned to so-called carry trades. In carry trade, investors get funds in a country with low borrowing costs and invest in one with higher returns, earning the spread between the two. The risk is currency fluctuations erase profits between the two rates.

The yen declined to a new multi-month low of 105.03 against the dollar by about 2:55 am ET Friday. The pair closed yesterday`s New York session at 104.47.

The yen touched a low of 162.35 versus the euro at 3:00 am Eastern Time Friday. The yen that hit a 15-day high of 160.64 per euro yesterday morning closed the day`s deals at 161.61.

German retail sales in real terms dropped 0.1% month-on-month in March, while expectation was 0.6% rise, a preliminary report from the Federal Statistical Office showed today. On an annual basis, retail sales were down 6.3%, much faster than the estimate fall of 2.3%. In nominal terms, retail sales slipped 3.7% year-over-year.

French producer prices rose 0.5% month-on-month in March, in line with expectations. In February, producer prices had climbed 0.4%. Year-on-year, producer prices were up 5.2% in March, slightly more than the 5.1% rise expected.

During early trading on Friday, the yen fell to 100.14 against the Swiss currency. This may be compared to a 7-week high of 99.10 hit yesterday morning. The franc-yen pair was worth 99.64 at Thursday`s close.

Swiss SVME Purchasing Managers` Index, or PMI, edged up 1.4 points to 56.7 points in April, Credit Suisse reported today. Economists had expected the index to stand at 55. This is the first increase since the beginning of this year. In March, the index recorded a reading of 55.3 and in the previous year, it was 62.2.

Against the pound, the Japanese currency weakened to a 4-day low of 208.10 by about 3:45 am ET Friday, compared to 206.27 hit late Thursday in New York.

Latest report from the Halifax showed that the house prices in UK fell 0.9% on a year-on-year basis in April. On a monthly basis, the house prices declined 1.3%. The Halifax said that more interest rate cuts are expected from the Bank of England over the coming months due to signs of expected economic slowdown.

The US April unemployment rate, change in Nonfarm payrolls and the factory orders report for March are expected to drive deals in the New York session. Copyright © 2007 RTTNews.com. All Rights Reserved.

USD/JPY

Posted on April 24th, 2008 in Currency Analysis, RTT News | No Comments »

Japanese Yen Slips To 3-day Low Against Dollar [USD/JPY]
4/24/2008 2:57:13 AM During early deals on Thursday, the Japanese yen slipped to a 3-day low against the US dollar. At about 2:45 am ET, the yen touched 103.90 per dollar, compared to yesterday`s North American close of 103.39. If the yen drops further, it may test support around 105.1 level. Copyright © 2007 RTTNews.com. All Rights Reserved.

USD/JPY

Posted on April 23rd, 2008 in Currency Analysis, RTT News | No Comments »

Japanese Yen Gains Against Majors [USD/JPY]
4/23/2008 7:22:55 AM At about 7.15 am Eastern Time, the Japanese yen staged a sharp rise against its major counterparts. Currently, the yen is trading at 102.86 against dollar, 164.27 versus the euro, 204.48 again the sterling and 102.31 versus the franc.

USD/JPY

Posted on April 14th, 2008 in Currency Analysis, RTT News | No Comments »

Dollar Falls To 4-day Low Against Yen [USD/JPY]
4/14/2008 4:16:04 AM In early deals on Monday, the US dollar dropped to a 4-day low against the Japanese yen as the fall in stock prices prompted investors to reduce holdings of higher-yielding assets funded with loans from Japan. The dollar also showed weakness against its European counterparts.

The dollar slipped to a 4-day low of 100.45 versus the yen by about 3:55 am ET. The pair was worth 100.93 at Friday`s close.

While uncertainty over the state of the global economy remains high, the Bank of Japan`s policy board agreed that its basic thinking on monetary policy remained unchanged, according to the minutes from the central bank`s March 6 and 7 policy meeting that were made public today morning.

The members of the board of governors felt they must be flexible in their policy response, the minutes also showed, but that careful study of the upside and downside risks to the economy were required.

At the same time, the dollar touched lows of 1.5794 against the euro and 0.9993 versus the franc. The euro-dollar pair closed last week`s trading at 1.5810 and the dollar-franc pair at 1.0001.

France`s business sentiment dropped to 105 in March from 106 recorded in February, a survey from the Bank of France revealed Monday. Economists were looking for a reading of 106 for March. The bank maintained its GDP growth estimate for the first quarter at 0.4%. The report added that growth carried over for 2008 should stand at 1.2% at the end of the first quarter.

Against the pound, the dollar declined to 1.9746 at 2:30 am Eastern Time, compared to 1.9721 hit late New York Friday.

Traders now look forward to the British producer price index and the Euro-zone industrial production reports, which are expected shortly.

The US March retail sales, business inventories report for February and the Federal Reserve Board Governor Kevin M. Warsh speech at Economic Policy Forum in New York are expected to influence trading in the New York session.

USD/JPY

Posted on April 10th, 2008 in Currency Analysis, RTT News | No Comments »

Yen Gains As Traders Consider Rate Decision [USD/JPY]
4/9/2008 2:40:43 PM The Japanese yen saw modest strength on Wednesday in New York as the Japanese central bank again decided to leave interest rates the same. The yen moved to its highest level in a week against the sterling and gained slightly against the euro as traders in both zones await rate decisions on Thursday.

Earlier in the day, the Board of Governors of the Japanese central bank voted unanimously to keep the rate unchanged for the fifth straight meeting, in line with expectations. The Board retained overnight call rate at 0.5% for the 16th consecutive month. The BoJ has kept rate unchanged at 0.5% since a 0.25% hike in February 2007.

The yen was modestly higher against the euro on Wednesday in New York. The Japanese currency rallied to the top of a near-term trading range before sliding back. The pair moved at 160.93 in the mid-afternoon. The Eurozone GDP, rose 2.2% year-on-year in the fourth quarter of 2007, marking a slower pace than the 2.7% seen in the third quarter, a final report from the Eurostat showed Wednesday.

The yen climbed to resistance in trading against the dollar. The currency moved to as high as 101.49 in the early afternoon and remained near that mark. U.S. traders looked at data showing that wholesale inventories rose 1.1 percent in February, twice as much as expected.

The Japanese currency moved to an eight-day high versus the pound on Wednesday in New York. The yen moved to 200.68 in the mid-afternoon as UK traders await the rate decision from the Bank of England, which is expected to cut rates by 25 basis points. UK industrial production grew 0.3% in February from the previous month, while economists expected just 0.1% increase, the Office for National Statistics or ONS, stated Wednesday.

USD/JPY

Posted on April 8th, 2008 in Currency Analysis, RTT News | No Comments »

Japanese Yen Falls Against Most Majors [USD/JPY]
4/7/2008 8:21:14 PM The Japanese currency staged a sharp fall at about 8:10 pm ET against most of its major counterparts. As of now, the yen is trading at 101.48 versus the franc, 204.08 against the pound, 161.62 versus the euro and 102.46 against the greenback.