Japanese Yen backs off 1-month

As reported at 3:32 p.m. (JST) in Tokyo, in trading today, the Japanese Yen dropped from an earlier 1-month high versus the Euro, while investors held on to short-term profits. The Yen’s departure from relatively steep gains made against other major currencies retreated on renewed worries over the banking system. Yesterday’s earnings report from the Bank of America, which advised of an upsurge in their non-performing assets, helped to underscore the trouble in the banking sector. According to one trader in Tokyo, the majority of trading activity was focused on the Yen/cross.

Other currencies, including the Euro, Australian Dollar and the Pound Sterling, recovered some previously lost ground versus the U.S. Dollar. The Euro rebounded at 127.40 Yen, a .7% increase from yesterday’s trade; earlier in the day, the Euro traded at 126.10 Yen. Versus the U.S. Dollar, the Euro gained .2%, trading at $1.2947, close to $1.2888, a 1-month low hit yesterday on the EBS platform.

According to one forex analyst, the markets would continue to focus on the release of the U.S. banking system’s “stress tests” being conducted by U.S. banking authorities. The results are expected to provide investors with an indication as to whether or not the U.S. recession is finally waning.