The U.S. Dollar continued its fall against the yen in early trading on March 27, 2008 in Tokyo, after the release of poor economic data, which confirms the poor state of the U.S. economy. According to the U.S. Commerce Department, new durable goods orders decreased by 1.7%, which was worse than the increase of 0.7% which had been anticipated by economists. Also, reports on new house purchases fell by 1.8% in February 2008.
On
March 27, 2008 at 01:32 GMT, in Tokyo, the U.S. Dollar traded at 98.73 yen, a decline from 99.94 yen traded late in New York. The Euro traded at $1.5839, a slight decrease from $1.5840 - $1.5850 traded late in New York.
Analysts are wondering if the recent decline in the value of the U.S. Dollar after the news on the state of the
U.S. economy will continue or come to an end. If this downtrend continues, investors and exporters in Japan expect the Bank of Japan to comment on its efforts to stem the slide of the U.S. Dollar.
The Euro slipped slightly against the U.S. Dollar following profit taking, but rebounded after news of better-than-expected growth of the German’s business sector. The President of the European Commercial Bank, Jean-Claude Trichet, announced that inflation in the Euro zone will remain higher than 2% throughout the year.
