JPY Daily News

JPY Rallies on Weak U.S Economic Data

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 further should Japanese investors start repatriating some of their massive overseas investments and the country's exporters throw in the towel and buy.

However the rapid advancement of the Yen has raised a concern among investors that the Japanese government may intervene in the currency market for the first time in five years in order to slow the JPY advance against the Dollar and other currencies. Japan last intervened on its own when it sold a record 20.4 trillion Yen ($224 billion) in 2003 and 14.8 trillion Yen in the first quarter of 2004, when the Yen rose as high as 103.42 per Dollar. Nevertheless some analysts are of the opinion that while government intervention is possible, any unilateral action wouldn't be enough to stop the Yen appreciating further against the greenback. Right now the market's focus is on the state of the U.S. economy and its monetary policy. This may may cause the JPY to advance to as much as 85 per Dollar.

Current Time: 05/26 21:56 GMT

Add events to google calendar Mark all Unmark all Print

#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
12/16
	04:00	JPY	BoJ Gov Shirakawa Speaks		*	*	*