The yen lost marginal ground vis-à-vis the U.S. dollar today as the greenback tested offers around the ¥97.35 level and was supported around the ¥96.35 level. Prime Minister Aso talked the yen lower through verbal intervention yesterday after meeting with President Obama, saying both leaders agree the U.S. dollar must remain the world’s key global currency. He noted If confidence in the dollar is damaged, it would cause significant effects. Aso also indicated the U.S. did not seek increased asset purchases from Japan. Most traders expect Bank of Japan will increase asset purchases in the coming months to help steer market rates of interest lower. The Nikkei 225 stock index gained 2.65% to close at ¥7,461.22. U.S. dollar offers are cited around the ¥104.15 level. The euro moved lower vis-à-vis the yen as the single currency tested bids around the ¥123.10 level and was capped around the ¥125.15 level. The British pound moved lower vis-à-vis the yen as sterling tested bids around the ¥137.65 level while the Swiss franc came off vis-à-vis the yen and tested bids around the ¥82.95 level. The Chinese yuan depreciated vis-à-vis the U.S. dollar as the greenback closed at CNY 6.8369 in the over-the-counter market, up from CNY 6.8368.
Join the Discussion