Market News

Hirohisa Fujii, the Finance Minister for Japan, recanted earlier statements about the Japanese government not intervening in a strong Japanese Yen.

Conflicting comments by the Japanese Finance Minister lead to the Yen’s rise and fall in Asian trading today.

A draft communiqué to be issued by the G20 leaders is promising that they will keep current emergency measures in place in an effort to shore up the global economies until such time as the recovery is solid.

With the conclusion of the 2-day meeting of the Federal Reserve FOMC yesterday, currency investors sold off their low-yielding U.S. Dollar with the belief that the Federal Reserve Bank has no intention of raising interest rates any time in the near future.

With growing optimism over the bettering health of the world’s economies, investors shed themselves of the low-yielding U.S. Dollar, plunging the greenback to its lowest levels in a year, in favor of higher yielding, asset-based currencies such as the New Zealand Dollar, as well as the Euro.

Ahead of the U.S. Federal Reserve Federal Open Market Committee meetings which will be held later today and continue through tomorrow, the U.S. Dollar slipped broadly as investors took advantage of gains in earlier sessions.

As reported at 12:58 p.m. in Sydney trading today, the U.S. Dollar rose in light Asian trading, continuing the greenback’s rebound from Friday’s trading in New York.

With investors covering their short positions, the U.S. Dollar made gains against the single currency Euro in Friday’s Tokyo trading, off of the 1-year low touched on yesterday.

The Australian Dollar hit a 1-year peak versus the U.S. Dollar in Tokyo trading today, supported by investors’ who are turning to the higher-yielding currency following continued evidence of the bettering health of the world’s economies.

As reported at 8:56 a.m. (BST) in London, the Japanese Yen moved up against the U.S. Dollar in trading today following comments made by the newly appointed Japanese Finance Minister, Hirohisa Fujii, who pointed out that there are benefits and advantages to the Japanese economy if the Yen is strong, provided that currency movements are gradual.

With investors waiting for the release of retail sales figures from the United States, the greenback was mixed in Tokyo trading today.

With China’s industrial output figures showing better-than-expected improvement last month, the U.S. Dollar Index slipped to a 1-year low versus a basket of major currencies in Asian trading today.

The U.S. Dollar continues to be on the defensive in Tokyo trading today, remaining poised near its lowest price this year.

As reported at 3:21 p.m. (JST) in Tokyo, the U.S. Dollar is struggling to recover from its lowest point versus commodity-linked currencies such as the New Zealand and Australian Dollars. Versus the single currency Euro, the greenback is floating close to its lowest price this calendar year as investors shift their funds into higher-yielding, albeit higher-risk currencies.

With investors trimming their buy positions, growth-linked, generally high yielding currencies, came close to approaching their 1-year high versus the Japanese Yen. Appetite for higher risk assets such as the New Zealand and Australian Dollars was somewhat lukewarm in Asian trading today, as investors wait for the U.S. market to reopen following a national holiday yesterday.