Tremendous, Ike...eh viva Iqbal et Nersin!
Here's a couple of $/yen articles: short term relief, longer term $ depreciates is the sense of the articles, fwiw. Not so astounding with the large trade deficit...and necessary balancing in LR. Heard from a currency trader the last $/yen 'crisis' at level 142 a couple of years ago was followed by announcement of a US public surplus (fiscal not deficit)! Eyes and ears peeled...
biz.yahoo.com
TOKYO, Sept 26 (Reuters) - A rare Group of Seven (G7) statement expressing concern over the recent sharp rise in the yen is expected to bring short-term relief, but the basic bullish trend for the Japanese currency is unchanged, analysts and dealers said on Sunday.
The market's attention will now be on Japan's fiscal stimulus plans or extra monetary measures by the Bank of Japan, they said.
''With the word 'yen' included in the G7 statement, the market will be careful about extending yen-buying, especially in a provocative manner. This will limit the yen's rise in the near term,'' said Hitoshi Imamura, deputy manager at Nippon Credit Bank.
The G7 communique did not promise joint intervention in the market but said: ''We shared Japan's concern about the potential impact of the yen's appreciation for the Japanese economy, and the world economy.''
It was rare for a G7 statement to mention a specific currency and even rarer for it to express its concerns. Analysts said it would be enough to stop the yen's rise of about 16 percent since June, at least for now.
''With the yen in the communique, I won't be surprised to see active position unwinding of yen long positions, which could lift the dollar towards 107 to 108 yen,'' Imamura said. The yen closed in New York on Friday at 104.15 yen...
ft.com
...But comments by deputy policy chief of the Liberal Party Yoshio Suzuki, playing up the prospect of joint intervention, elicited a sceptical response from analysts.
His suggestion that there was a 60 to 70 per cent chance that the United States would join Japan in selling yen was dismissed as fanciful by most market participants.
Analysts said that the US would be reluctant to take action that might exacerbate its ballooning trade deficit and run counter to economic fundamentals.
"Current account differentials would suggest an exchange rate around ¥85-90 for the dollar," said David Bloom, currency analyst at HSBC...
Best regards,
Nancy
|
