JPY Daily News

Yen Holds its Strength Despite Bleak Economic Outlook

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 down slightly at 90.23. The low volatility was due the closure of Japan's markets, due to the emperor's birthday.


The previous week was highlighted by two significant Interest Rate Cuts. The first was in the U.S., which sent rates near to 0%, and as a result the Yen saw a sharp appreciation vs. the USD. Later in the week, the Bank of Japan responded by lowering its rates to 0.10%. Following the Japan's rate cut, the Yen showed a slight turn around, helping the Yen rise to the 90 Yen mark.


The continued strengthening of the Yen remains a concern for the Japanese economy. This is reflected by the government expressing its displeasure of the strong Yen. In recent statements, the government revealed that the economic outlook will continue to be bleak deep into 2009, and Japan's economic woes are likely to become more severe as the economic crisis deepens. Therefore, only a much weaker Yen may recue Japan's economy in the coming months.

Current Time: 05/27 04:26 GMT

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#	Time	$€£¥	Event	Per.	Prev.	Fore.	Act.	Imp.
12/23
	23:50	JPY	BSI Manufacturing Index		-10.0	-12.0	-44.5