Ahead of U.S./Japan Summit Today, U.S. Dollar Gains on Japanese Yen

By: Barbara Zigah

In advance of the meeting between Naoto Kan, the Japanese Prime Minister and the President of the United States, Barack Obama, the U.S. Dollar moved up versus the Japanese Yen, as well as the common currency Euro, in Asian trading today, rebounding from recent losses. Speculation exists that one of the topics of conversation today at the summit will be the recent currency intervention undertaken by the Japanese Ministry of Finance.

As reported at 1:20 p.m. (SGT) in Singapore, the U.S. Dollar traded against the Japanese Yen at 84.59 Yen, off from Wednesday’s late trade in New York of 84.54 Yen; versus the common currency Euro, the greenback traded at $1.3392, up from Wednesday’s late New York trade of $1.3394.   Yesterday, the U.S. Dollar slipped against the Euro to its lowest level in nearly five months.

Most analysts believe that the Japanese Yen will hold steady until after today’s summit, with speculation that should any intervention occur, it will likely be after the meeting. One strategist in the U.K. predicts that the combination of the weak U.S. Dollar and concern from Japanese authorities over their currency’s growing strength will likely lead to further intervention within the next few days. 

Japanese markets are closed for a holiday today, as are a fair number of Asian markets, and most of the major currencies are expected to trade in narrow ranges.