Japanese Importers Precipitate Yen Slide

By: Barbara Zigah

With importers from Japan still in the process of settling their accounts, the Japanese Yen slipped versus the U.S. Dollar and common currency Euro in Asian trading today. Some market players commented that this week the currency markets in Asia were relatively lackluster, but expect that next week the activity level should increase in light of the economic data expected out of the U.S. which should spur U.S. Dollar trading and lift the greenback. As at 3:05 p.m. (JST) in Tokyo, the Yen was trading against the U.S. Dollar at 93.57 Yen, an increase of .2%. Versus the Euro, the Yen traded at 125.00 Yen, a rise of .33%.

Analysts suggest that the Euro may still continue to slide with the potential to fall to $1.3100 and 123.00 Yen should Greek fiscal concerns be exacerbated while U.S. economic data comes in strong. The Euro enjoyed a slight rebound yesterday, following the release of Greek budget information which was not as dismal as expected. As well, the European Central Bank commented that, in its opinion, Greece could meet their debt obligations, which was an encouraging statement to investors.

Next week, market players will await the release of several key indicators from the United States. On Wednesday the U.S. CPI (Consumer Price Index) for last month will be released, as well as retail sales data. Then, on Thursday and Friday, industrial outputs and housing starts data, respectively, will be released.  

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.