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JPY Daily News
JPY still Struggling to Recoup its Losses Against the Dollar
The Japanese currency was trading near a one-week low against the EUR. Some analysts are predicting that official efforts to tackle the global economic crisis will boost Asian stocks and reduce the Japanese currency's appeal as a safe haven. Stock market gains are seen as a sign of easing risk aversion and can curb demand for the Yen, which tends to grow when risk-taking declines and carry trades are unwound. In carry trades, investors obtain funds in a country with low borrowing costs and buy assets where returns are higher. Japan's 0.3% target rate compares with 2.5% in Europe and 5% in New Zealand.
The JPY traded at 120.06 per EUR from 120.26 late yesterday in New York, when it fell to 120.96, the lowest since December 1. Against the Dollar, it was little changed at 92.95.
The Japanese economy had shrank in the third quarter faster then the government initially estimated, after businesses cut spending and slashed inventories in anticipation of a prolonged recession. This data, coupled with uncertainty over Obama's rescue package plan has put a brake on further JPY gains in the market. The Japanese currency has surged 14% against the Dollar since September, adding to exporters' woes by eroding the value of their profits made abroad.
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Print| # | Time | $€£¥ | Event | Per. | Prev. | Fore. | Act. | Imp. |
|---|---|---|---|---|---|---|---|---|
| 12/09 | ||||||||
| 05:00 | JPY |  Leading Indicators | 89.4% | 85.0% | 85.0% |  | ||
| 06:00 | JPY | Prelim Machine Tool Orders | y/y | -40.0% | - | -62.2% | | |
| 23:50 | JPY | Core Machinery Orders | m/m | 5.5% | -3.9% | -4.4% |  | |
| 23:50 | JPY | CGPI | y/y | 4.8% | 2.8% | 2.8% | | |
