By: Barbara Zigah
Japanese importers, awaiting the outcome of the Upper House elections which will be held on Sunday, helped push the Japanese Yen lower against the U.S. Dollar in Asian trading today. Investors with a short-term focus remained on the sidelines until they receive some clearer cut direction as to the Yen’s future movement. One strategist in the U.K. noted that if the ruling party doesn’t hold power, it will put negative pressure on the Yen, and recent opinions polls show that the Democratic Party of Japan (DPJ) are at risk of falling short of the necessary seats required to obtain majority. As reported at 2:50 p.m. (JST) in Tokyo, the Yen was trading against the U.S. Dollar at 88.63 Yen, down from 88.38 Yen yesterday in New York late trading.
Meanwhile, the common currency Euro saw gains against the Japanese Yen and the U.S. Dollar, trading at 112.40 Yen and $1.2684, off from 112.27 Yen and $1.2703 in late trading in New York. Analysts predict that despite the Euro’s recent rally, it is likely to fall in the future, as the Euro-zone economies remain under significant pressure. Markets remain focused on the results of European banks’ stress tests due out on July 23rd.