By: Barbara Zigah
In Asian trading today, the U.S. Dollar slipped versus the Japanese Yen on unrealized investor expectations that Naoto Kan, the new Japanese Prime Minister, would further address the issue of a weaker Japanese currency. In his initial press conference, the P.M. commented that the Japanese economy is better off generally with a weaker yen, especially given the country’s reliance on exports. But many analysts and traders alike had expected a more aggressive tone, and are disappointed in his lack of follow-up commentary; several expressed feelings of betrayal. As reported at 2:50 p.m. (JST) in Tokyo, versus the Japanese yen the U.S. Dollar was trading at 91.40 Yen, slightly off the 91.44 Yen struck in New York overnight.
Investors are keen to hear what the new Japanese Finance Minister has to say regarding exchange rates. Yoshihiko Noda has not yet offered an opinion as to the direction of the Yen, and markets are anxious to hear his position. In the absence of other news, his remarks will likely determine the direction of Dollar/Yen trade, at least in the short term.
Investors will also be awaiting remarks from Jean-Claude Trichet, the ECB President, who will be holding a press conference today in Frankfurt, to assess his opinion of the Euro-zone debt crisis.
Disappointing Remarks from Japanese P.M. Sends U.S. Dollar Lower vs Yen
After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.