The Japanese Yen gained versus both the U.S. Dollar and the Euro during the Asian session earlier as investors await some clarification from conflicting commentary out of the G20 meeting which is being held in Moscow. One currency strategist in Hong Kong noted that there never seemed to be a unified view coming from the G20 participants which will likely result in a choppier session than normal as traders weigh the various comments specifically relative to currency manipulation.
As reported at 12:12 p.m. (JST) in Tokyo, the EUR/JPY pair edged 0.6% lower to trade at 123.52 Yen, off of last week’s 34-month peak of 127.71 Yen; meanwhile the USD/JPY pair dropped 0.6% to trade at 03.27 Yen, moving farther from the 33-month high struck on Monday when the pair hit 94.47 Yen.
In the Eurozone, recent data confirmed that the common area fell further into a recession in the 4th quarter of 2012, which brought to the fore investors’ concerns over the policymakers’ inability to tackle fundamental problem areas. The EUR/USD pair dropped 0.1% to trade at $1.3362, off the 3-week trough struck yesterday and moving well away from the 13-month peak struck less than two weeks ago when the pair hit $1.3711.
G20 Comments Lift Yen
Barbara Zigah