14/12/2012 16:40:00

CURRENCIES: Dollar Falls Vs. Yen Before Japan Election

By Deborah Levine and Sara Sjolin, MarketWatch

SAN FRANCISCO (MarketWatch) -- The dollar turned lower against the yen on Friday ahead of Japan's general election over the weekend and also lost ground against the euro and other major currencies.

The ICE dollar index (DXY), which measures the greenback against a basket of six rival currencies, fell to 79.680 from 79.925 in late North America trade on Thursday.

The dollar turned down to Yen83.49 from Yen83.65 the prior day.

The dollar rose over the last several days to its highest level since March versus the yen on expectations Japan's Liberal Democratic Party leader Shinzo Abe will win in Sunday's election. He's called for more aggressive monetary easing and higher inflation.

"Abe has promised to boost nominal economic growth to 3% with the help of government stimulus programs and expansionary monetary policy," analysts at Commerzbank said in a note.

"Should he really implement the announced measures, significant yen depreciation would be the result. The currency has been under considerable pressure for some weeks, consistently remaining above the USD/JPY mark of 82. The options market is also clearly betting on a weaker yen," they said.

The dollar is still up 1.3% this week versus its Japanese counterpart.

As for the euro, it added to the week's gains versus the greenback, leaving it up 1.4% from a week ago.

Among other major currency pairs, the euro climbed to $1.3139 from $1.3077 in late trade on Thursday. It hasn't ended above $1.31 since Oct. 17, according to FactSet.

Most European equity markets were also on the rise, the Stoxx 600 Europe index gaining 0.1%, after the purchasing managers' composite output index for the euro zone showed the economic downturn eased in December.

"European officials also had a good week," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman, in a note. "Aid to Greece was approved, averting a more serious crisis. The broad strokes of the European Central Bank taking on the responsibility of supervisor for important (nationally or systemically) banks has been agreed upon."

"Yet there is still much to be concerned about" as more austerity in other countries could lead to political changes that can strain the relationship between countries needing aid and those being asked to give it, he added.

The pound rebounded against the dollar to trade at $1.6438 from $1.6112 Thursday, when Standard & Poor's Ratings Services cut its outlook on the U.K.'s triple-A credit rating to negative from stable.

The Australian dollar rose to $1.0551 from $1.0527.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

December 14, 2012 11:40 ET (16:40 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Post comment

Related debate

  • 1 week
  • 1 month
  • 1 Year
21 Apr
OMXC25
Som tidligere påvist kan bulls køre hen over hvilken som helt bear. Hvis de altså vil. Det kræver at..
30
19 Apr
 
Et opgør med Finanstilsynet er tvingende nødvendigt, hvis tilliden til markedet ikke skal lægges øde..
28
18 Apr
 
LÆS NU FOR HELVEDE NOGEN AF DE 38000 indlæg som siger at børsen er nede!   Det er kraftstejleme da u..
21
20 Apr
VWS
Vestas har en ordrerbeholdning større end de nogensinde har haft, og de sendte en næsten færdigjort ..
19
19 Apr
BAVA
      Vedr. shortsqeeze mm. og den ekstreme kursmanipulation der dagligt foregår på Nasdaq Kbhvn. T..
19
20 Apr
VWS
hvornår kommer analysen?
16
18 Apr
 
Det er en katastrofe ! Hvis det fortsætter ret meget længere er vi allesammen nødt til at gå ud og l..
16
17 Apr
LAUR
An aktie man aldrig skal eje. Ejerne trækker store summer ud, at en virksomhed der kæmper for overle..
14
19 Apr
 
Hej alle,   Jeg lavede et lille indlæg på Stolt-Nielsen for nylig hvor jeg desværre – og det beklage..
13
21 Apr
VELO
Jeg har i torsdags købt Veloxis igen efter en længere pause. For efterhånden en del år siden stod de..
12

HSBC Bank Plc : Form 8.5 (EPT/RI) - Lonmin PLC

22/02/2018 10:54:53
FORM 8.5 EPT/RI) PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY Rule 8.5 of the Takeover Code (the "Code") 1.         KEY INFORMATION (a) Name of exempt principal trader: HSBC BANK PLC (b) Name of offeror/offeree i..

Rathbone Brothers Plc : Preliminary announcement of 2017 results

22/02/2018 07:00:19
Funds under management up 14.3% to £39.1 billionThis is a preliminary statement of annual results published in accordance with FCA Listing Rule 9.7A. It covers the year ended 31 December 2017. Mark Nicholls, Chairman of Rathbone Brothers Plc, said: "UK and global investment markets performed well in 2017, with some indices reaching record levels towards the end of the year. This outcome has b..

Elliott Capital Advisors, L.P : Form 8.3 - GKN Plc

21/02/2018 15:25:10
FORM 8.3 PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE Rule 8.3 of the Takeover Code (the "Code") 1.         KEY INFORMATION (a) Full name of discloser: Elliott Capital Advisors, L.P. (for itself and related general partners ..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
Akcea Therapeutics to Present Data on Inotersen for the Treatment of hATTR Amyloidosis at the 2018 American Academy of Neurology Annual Meeting
2
Royal Financial, Inc. Announces Third Quarter and Year to Date Earnings for Fiscal Year 2018
3
Larson Electronics LLC Releases 3 Phase 3-Wire 150 Horsepower Variable Frequency Drive
4
Military Order of the Purple Heart Announces Suspension of its National Service Program
5
Vivial and Neighbor Island Schools Launch 10th Annual Recycling Drive and Environmental Awareness Campaign

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2018   Disclaimer and Terms of Use
Quote information is delivered by Morningstar.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
22 April 2018 17:36:46
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: ReleaseBuild_20180417.1 - EUROWEB2 - 2018-04-22 18:36:46 - 2018-04-22 17:36:46 - 1000 - Website: OKAY