By: Barbara Zigah
Comments issued by the U.S. Federal Reserve following their FOMC meeting yesterday pushed the U.S. Dollar down broadly in Asian trading today. Versus the Japanese Yen, the greenback slipped to its lowest level in the week following Japanese intervention. Speculators expect the Ministry of Japan to intercede yet again, since there is now the strong probability that the Federal Reserve will ease more money into the American economy in an effort to spur it on.
As reported at 2:35 a.m. (JST) in Tokyo, the U.S. Dollar slipped .2% against the Yen to 84.78 Yen before rebounding slightly to 84.92 Yen. The U.S. Dollar Index, a measure of the greenback’s strength against major currencies, slipped to 80.122 .DXY, the lowest level since August.
Naoto Kan, the Japanese Prime Minister, did nothing to allay investor concerns when he commented that a drastic change in the Yen would prompt unavoidable intervention. Some traders commented that they believe intervention will once again occur should the Yen hold between 83.00 and 85.00. A rumor is also circulating that Japanese authorities at the Ministry of Finance are calling banks in Japan to ask whether or not they will have staff in place this Thursday, which is a Japanese holiday, has traders cautious.
FOMC Comments Push Greenback Broadly Lower in Asian Trading
Barbara Zigah