USD/JPY - 91.12.. Dollar bulls are licking their wounds as despite y'day's bullish comment by CIC's offical Peng, in his personal opinion, dlr has hit bottom, limited room to fall further'. This had lifted price briefly higher in Tokyo morning to 92.43. Later in European mid-day, the surpise announcement by PBOC of a 0.5% hike in bank's reserve ratio sparked off a massive wave of unwinding of yen carry trades. Initial buying by Japanese importers n light short-covering at Tokyo opening did little to help the dlr to recover as all Asian bourses traded lower, Nikkei 225 closed down by 144 points n the Shanghai stock exchange down by almost 3%, suggesting dlr will be sold on rebound today.
Join the Discussion