2013-03-15 07:50 Asian Session – Yen retreats after new Bank of Japan chief appointed
March 15, 2013 7:50 am
The yen was weaker in the Asian session on Friday as a result of the appointment of Haruhiko Kuroda as the new governor of the Bank of Japan. Kuroda is expected to push for more monetary stimulus to boost growth in the sluggish Japanese economy.
Expectations that the new BOJ leadership will accommodate reflationary policies sought by Prime Minister Shinzo Abe as part of his economic revival plan have driven yen selling and share buying for the past four months.
Meanwhile a stronger dollar, boosted by upbeat economic data, helped underpin dollar against yen. USDJPY opened in Asia at 96.09 and touched highs of 96.26. The dollar index hit a seven-month high on Thursday. Data showing a fall in the number of Americans filing new claims for employment benefits was the latest in a series of data signalling a brighter outlook for the world’s biggest economy.
Yen also weakened against the yen, as EURJPY rose to a high of 125.32, up 0.6 percent since early Thursday.
Euro was up against the dollar, consolidating gains made late on Thursday to trade a 25-pip range around the key $1.3000 level, after bouncing from a three-month trough of $1.2910.
The pause in the dollar rally against euro and sterling is expected to be brief as there is a growing divide between the US and Europe right now.In contrast to the US, recent dismal economic data out of the euro zone, coupled with political uncertainty in Italy and a likely bailout for Cyprus, kept a gloomy outlook which will weigh on the single currency. Focus will be on the EU Summit concluding today.
Sterling recorded its biggest one-day rise in over seven months mainly due to short covering and not on fundamentals. GBPUSD hit a high of $1.5117 in late New York trade yesterday, before consolidating in Asia at $1.5080.
The yen was weaker in the Asian session on Friday as a result of the appointment of Haruhiko Kuroda as the new governor of the Bank of Japan. Kuroda is expected to push for more monetary stimulus to boost growth in the sluggish Japanese economy.
Expectations that the new BOJ leadership will accommodate reflationary policies sought by Prime Minister Shinzo Abe as part of his economic revival plan have driven yen selling and share buying for the past four months.
Meanwhile a stronger dollar, boosted by upbeat economic data, helped underpin dollar against yen. USDJPY opened in Asia at 96.09 and touched highs of 96.26. The dollar index hit a seven-month high on Thursday. Data showing a fall in the number of Americans filing new claims for employment benefits was the latest in a series of data signalling a brighter outlook for the world’s biggest economy.
Yen also weakened against the yen, as EURJPY rose to a high of 125.32, up 0.6 percent since early Thursday.
Euro was up against the dollar, consolidating gains made late on Thursday to trade a 25-pip range around the key $1.3000 level, after bouncing from a three-month trough of $1.2910.
The pause in the dollar rally against euro and sterling is expected to be brief as there is a growing divide between the US and Europe right now.In contrast to the US, recent dismal economic data out of the euro zone, coupled with political uncertainty in Italy and a likely bailout for Cyprus, kept a gloomy outlook which will weigh on the single currency. Focus will be on the EU Summit concluding today.
Sterling recorded its biggest one-day rise in over seven months mainly due to short covering and not on fundamentals. GBPUSD hit a high of $1.5117 in late New York trade yesterday, before consolidating in Asia at $1.5080.
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