DJ6ual - An Irish Girl

Search This Blog:



Comment FAQ...

When leaving a COMMENT above, if you have any trouble please try clearing your cache and refreshing the page. Thank you.

Dollar hits new 15yr low against Yen

October 7, 2010

The dollar stayed weak against the yen in Asia  on Thursday after it hit a new 15-year low amid expectations of additional monetary easing by the US Federal Reserve, dealers said.

The dollar fetched 82.86 yen in Tokyo morning trade, close to a new 15-year low of 82.75 yen hit briefly in New York on Wednesday and the level at which Japan carried out its first intervention since 2004 on September 15.

The euro was trading at 1.3921, hardly changed from New York late Wednesday. It slipped to 115.35 yen from 115.58.

"The basic trend is dollar selling on the expected credit easing... The market is now sensitive to any negative news on the US economy," said Yasuyuki Takeuchi, dealer at Mitsubishi UFJ Trust and Banking.

The dollar came under new pressure in New York Wednesday after a report from payrolls firm ADP showed an unexpected drop in private sector jobs in September, highlighting concerns about the lagging economic recovery.

The data fuelled concerns that a closely watched government survey on non-farm payrolls for September due Friday may also indicate weakness.

The markets increasingly expect the US Federal Reserve to pump more money into the system to boost the flagging economy, even if doing so weakens the dollar and risks stoking inflation.

The dollar resisted further falls from the low hit in New York on speculation of further Japanese intervention, but some players believe Tokyo cannot move before a Group of Seven (G7) meeting starting Friday, dealers said.

"Some players are feeling safe (about pushing the dollar lower) as they believe Japan's intervention would at best be a solo move" with other countries also wanting to keep their currencies low to promote exports, Takeuchi said.

Finance ministers and central bank governors from the G7 economic powers are to hold two-day talks in Washington starting Friday.

Satoshi Tate, senior dealer at Mizuho Corporate Bank, told Dow Jones Newswires the dollar may fall as low as to 82.30 later Thursday.

If Japan intervenes, the dollar may rise to 85.50 but otherwise the upside would be limited around 83.50 Thursday, he said.

Go Back

Comment