Yen Edges Higher, Holds Asian Trade

By: Barbara Zigah

In Asian trading, the Japanese Yen edged higher versus the U.S. Dollar but remains within striking distance of a 7-month through as Japanese importers support the greenback. Since early February the U.S. Dollar has gained some 5.4% against the Japanese currency, primarily attributed to the easing actions of the Bank of Japan. As reported at 11:53 a.m. (JST) in Tokyo, the USD/JPY was trading at 80.15 Yen, a decline of 0.2% and near 80.406 Yen, struck yesterday on the EBS trading platform.

The Pound Sterling was also under pressure in Asia, following the release yesterday of minutes from the most recent Bank of England meeting. The MPC is still divided on the quantitative easing measures, but the bias seems to suggest that more easing may be forthcoming as and when the economy weakens. The latest central bank inflation report had suggested otherwise, hence the surprising dovish position has sent the GBP/USD lower, recently to $1.5672 following a 0.7% decline yesterday.

In the Eurozone, news that Euro-area PMI’s were worse than expected put the Euro under pressure, but less than might be expected. The Euro was trading recently at $1.3254 and faces resistance at $1.3307, the 100-day moving average for the EUR/USD pair.