JPY Daily News

USD/JPY Freefalls to Lowest Level in 13 Years

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 seen after the U.S. Senate rejected a bailout package for the U.S. auto industry.


More tough talk was heard from the Japanese government on the appreciation of the Yen. Speaking early this morning, the Japanese Minister of Finance told reporters that the government will act appropriately to market movements. This could create a scenario for the Japanese government to intervene in the currency markets in order to depreciate the Yen.

The appreciation of the JPY against the Dollar may prove difficult to hold throughout the day. The inevitability of a bailout package being approved by the U.S. Congress may reduce the recent gains. Light trading with less than normal market makers also helped to compound the gains of the JPY. Profit taking and a more normalized trading session may influence the USD/JPY towards the 90 Yen mark, potentially by the end of trading today.

Current Time: 05/26 23:48 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
12/12
	04:30	JPY	Revised Industrial Production	m/m	-3.1%	-3.1%	-3.1%
	05:00	JPY	Household Confidence		29.4	28.0	28.4