By: Barbara Zigah
The Japanese Yen continues to broadly decline following last month’s devastating earthquake and tsunami in Japan, and with the concerted efforts of the G7 to keep the Japanese currency from appreciating during this reconstruction period. In Asian trading, the Yen struck an 11-month low against the common currency Euro, and a 2½ year trough against the Australian Dollar. Versus the U.S. Dollar, the Yen fell to a 6-month low. Most market players expect a prolonged period of weakness in the Yen, not only because of the G7 interventions but because the Bank of Japan is now likely to be among the last of the central banks to consider raising interest rates.
As reported at 3:20 p.m. (JST) in Tokyo, the Yen fell against the Euro to 121.91 Yen on the EBS trading platform, an 11-month low. Against the Aussie, the Yen slipped 0.7%, trading at 88.27 Yen, while against the greenback the Yen slipped 0.5% to 83.50 Yen.
Beginning today through tomorrow, officials from the Bank of Japan will be meeting to discuss policy in the wake of the crisis. Most analysts expect that they will signal their willingness for further easing measures, if necessary.