By: Barbara Zigah
In Asian FX trading today, the U.S. Dollar edged up versus the Japanese Yen after the release of the news by a White House representative that Ben Bernanke, the Chairman of the U.S. Federal Reserve Banking system, is set for reappointment to a second term of office. As reported at 3:47 p.m. (JST) in Tokyo, the U.S. Dollar traded at 90.10 Yen, up from 89.92 Yen established on Friday in New York; earlier in today’s trading, the Yen had briefly touched on 89.71 Yen, a new 1-month trough.
Despite that news, many FX market analysts insist that should the prices in the global equity markets continue to decline, and in particular, if economic indicators from the United States suggest recovery at a slower pace, the U.S. Dollar could once again fall against the Yen, with some analysts suggesting that the greenback might slip as far as 88.50 Yen. One forex manager at a bank in Tokyo believes the decline of the U.S. currency could be greater still against the safe-haven Yen, perhaps even to 88 or 87 Yen. The economic data to be released this week will be the focus of market players and analysts alike; a report on December’s existing home sales is expected later today, and the all-important consumer confidence index will be released tomorrow.
U.S. Dollar Edges Higher Versus Japanese Yen on Bernanke Reappointment News
Barbara Zigah