Archive for December, 2008
Japanese Economy Faces Severe Depression in 2009
Posted on31. Dec, 2008 by admin.
The Japanese currency, which has surged across the boards this year even as the economy slid into recession and Interest Rates were cut to near zero, has remained steady at 90.26 per Dollar yesterday, compared to 111.33 at the end of last year.
Despite recent JPY gains against most major currencies, economists predict that Japan’s economy [...]
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Yen Sees High Volatility but Little Changes
Posted on30. Dec, 2008 by admin.
Japanese markets are closed for a banking holiday today and will be for the remainder of the year. This may ease the pressure on the USD/JPY. The recent appreciation of the Yen has prompted the Japanese government to call for direct government intervention to depreciate the Yen in the open market. As the appetite for [...]
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Strengthening JPY a Boon to Japanese Exports
Posted on29. Dec, 2008 by admin.
Any other central bank would look upon a strengthening currency as a blessing. Japan, however, may see it as a curse. As the Bank of Japan (BoJ) has intentionally held down the strength of its currency to boost Japanese exports, the recently growing JPY spells recession for the island economy. As exports fall, stocks aren’t [...]
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Yen Holds its Strength Despite Bleak Economic Outlook
Posted on23. Dec, 2008 by admin.
The Yen may have begun to reverse its recent rise against the Dollar, but during trading yesterday the pair was relatively unchanged. This comes as a change to recent market events that saw the Yen climb to a 13-year high against the Dollar in the previous week of trading. Yesterday, the USD/JPY ended the day [...]
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BoJ Weakens JPY to Boost Exports
Posted on22. Dec, 2008 by admin.
The Bank of Japan’s (BoJ) monetary intervention last week has helped slow down the appreciation of the JPY in this week’s early trading hours. With Japan’s trade gap growing and economy entering a deeper recession, the BoJ needed to take steps to weaken the national currency in order to boost Japanese exports.
So far the intervention [...]
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Bank of Japan Lowers Interest Rates to 0.10%
Posted on19. Dec, 2008 by admin.
The JPY began losing its momentum yesterday after a long week of steady gains. The Japanese currency experienced its first daily drop against the U.S. Dollar as the Japanese Finance Minister stated that currency intervention in the shape of an Interest Rate cut by the Bank of Japan (BoJ) may be used to keep the [...]
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Will Japan Follow America’s Aggressive Monetary Policy?
Posted on18. Dec, 2008 by admin.
The recent Interest Rate cut in the U.S. sent the USD/JPY tumbling down below the 88 Yen level. Yesterday the JPY showed a bit of spark, reaching the 87.12 mark. This is a level not seen for nearly 13 years. The Yen is up more than 25% this year vs. the Dollar. The bullishness of [...]
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JPY Rallies on Weak U.S Economic Data
Posted on16. Dec, 2008 by admin.
The Yen has jumped to a 13-year high against the Dollar to 90.50 while advancing against a basket of its major currencies on speculation the global recession will prompt investors to unwind carry trades. Japan’s 0.3% target lending rate is the lowest among major economies. Economists predict that the JPY may accelerate its gains even [...]
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Yen Surges to 13-Year High; Damages Japanese Exports
Posted on15. Dec, 2008 by admin.
The JPY’s 17% gain against the dollar since September has lowered the value of overseas sales and undermined the competitiveness of Japanese cars, cameras and televisions. The Yen’s surge to a 13-year high last week has compounded woes for Japan’s manufacturers who are already reeling from a collapse in export markets. Layoffs by companies including [...]
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USD/JPY Freefalls to Lowest Level in 13 Years
Posted on12. Dec, 2008 by admin.
A staggering price drop was seen during late evening trading for the JPY/USD. At one point, the USD/JPY was trading at 88.13. The pair finally settled at 89.32, well below the psychological mark of 90 Yen. The USD/JPY has not been trading at a level this low since 1995.
These massive losses for the pair were [...]
