By: Barbara Zigah
With investors watching closely for any last minute sales of the greenback by exporters from Japan on this, the final day of the first half of the Japanese fiscal year, the U.S. Dollar appears to be firmly rooted near this week’s low trade versus the Japanese Yen. As reported at 1:29 p.m. (JST) in Tokyo, the U.S. Dollar was trading at 83.59 Yen, a decline of .2%, and down .7% for the month of September.
Market players speculate that the Japanese Ministry of Finance may intervene again should the greenback fall below the 83.00 Yen price; though one analyst in a Japanese bank believes the intervention price is closer to 83.50 Yen. A senior currency strategist in Hong Kong confirms that this is the levels during which Japan intervened before.
Some players suggest that this intervention may be “trickier” to gauge than earlier, as they believe that there will be some further consideration given due to the fact that levels are met as a result of weakness in the U.S. currency, as opposed to the strength of the Yen. The U.S. Dollar continues to struggle, impeded by speculation that the Federal Reserve will move for additional quantitative easing
U.S. Dollar Struggles on Easing Worries as Investors Ponder Japanese Intervention
Barbara Zigah