A day after a second earthquake struck the beleaguered island nation, the Japanese Yen fell broadly, striking multi-month lows against the U.S. Dollar and the common currency Euro.
Ahead of the European Central Bank’s policy and rate setting meeting which is set to begin later in the global day, the common currency fell from multi-month peaks against the Japanese Yen and the U.S. Dollar.
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.
Following the Reserve Bank of Australia’s announcement that their policy and rate setting committee decided to hold key interest rates at 4.75%, the Australian Dollar slipped against the U.S. Dollar.
With a meeting of the European Central Bank’s policy setting committee looming later in the week, the common currency struck new multi-month peaks in Asian trading today.
The Japanese Yen continues to weaken versus the majors in midday Asian trading, slipping to a 10-month trough versus the common currency Euro.
The Euro briefly struck a 10-month peak against the Japanese Yen in Asian trading today on raised expectations that the Bank of Japan will not consider an interest rate hike any time soon.
The U.S. Dollar hovered close to a 3-week peak versus the Japanese Yen in Asian trading today on investor speculation that the United States’ Quantitative Easing program will not be extended past the planned end in June.
With Jean-Claude Trichet’s reassurance to the worlds’ markets that an interest rate hike was imminent to suppress rising inflation, the Euro is finding broad support in Asian trading today.
The common currency Euro slipped against the U.S. Dollar in Asian trading today following the defeat in Germany of Angela Merkel's Christian Democrat party in regional elections.
Portugal’s problems grew as another credit ratings agency downgraded sovereign debt from A- to BBB, though most analysts acknowledge that the markets were expecting the downgrade.
The common currency Euro slipped in Asian trading against the U.S. Dollar, with the realization that Portugal will have no other option but to seek the offered bail-out package from the joint E.U./IMF special purpose mission.
Risk averse investors pushed the Euro lower in Asian trading today, and the short term outlook for the common currency appears dependent on the Portuguese government's approval (or not) of austerity measures legislation.
The Japanese Yen continues to push higher against the. U.S. Dollar in Asian trading, and some market players are speculating that the G7’s resolve to prevent further Yen appreciation may be put to the test later today.
The Japanese Yen remains under pressure against the U.S. Dollar, and although losses were generally limited in somewhat subdued trading, most market players believe that the G7 will likely again intervene to curb the Yen’s rise.