Disappointing jobs data released by the U.S. Labor Department last Friday precipitated the U.S. Dollar’s continuing decline versus major currencies. As reported at 10:45 a.m. (JST) in Tokyo, the U.S. Dollar Index, a measure of the U.S. currency’s value versus a group of major currencies, fell to 76.79 .DXY, a decline of .28%. Versus the Japanese Yen, the greenback held steady, trading at 89.85 Yen.
Investors continue to watch for signs that the Japanese government will react, given the Yen’s recent rise. Recent comments made by Hirohisa Fujii, the Japanese Finance Minister, at the G7 meeting in Istanbul indicated that action would only be taken if the Yen’s movement was irregular or one-sided. Analysts speculate that the new administration will not interfere unless and until the U.S. Dollar falls below 80 Yen, though such intervention would depend on whether or not it was a gradual decline.
Also in Asian trading, the Australian Dollar saw gains in advance of the Australia Reserve Bank’s meeting tomorrow; investors are anxious to learn if the RBA will raise key interest rates to 3.25%. This belief is supported by two influential Australian media columnists who wrote that they expect the RBA to raise rates soon, given the improvement in the country’s economy. Versus the U.S. Dollar, the AUD traded at $0.8740, erasing much of the losses it suffered on Friday.
Investors continue to watch for signs that the Japanese government will react, given the Yen’s recent rise. Recent comments made by Hirohisa Fujii, the Japanese Finance Minister, at the G7 meeting in Istanbul indicated that action would only be taken if the Yen’s movement was irregular or one-sided. Analysts speculate that the new administration will not interfere unless and until the U.S. Dollar falls below 80 Yen, though such intervention would depend on whether or not it was a gradual decline.
Also in Asian trading, the Australian Dollar saw gains in advance of the Australia Reserve Bank’s meeting tomorrow; investors are anxious to learn if the RBA will raise key interest rates to 3.25%. This belief is supported by two influential Australian media columnists who wrote that they expect the RBA to raise rates soon, given the improvement in the country’s economy. Versus the U.S. Dollar, the AUD traded at $0.8740, erasing much of the losses it suffered on Friday.