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
22 Nov
VWS
Hejsa Mena.  nu har jeg observeret at du kommer i meget spændende diagologer med de fleste skribente..
42
23 Nov
OW
Thomas Eriksson, som er chef for investeringsbanken Carnegie, er blevet kontaktet af Finansinspektio..
34
08:47
 
Noget af det sværeste og mest risikofyldte i investeringsuniverset er at investere i turn-arounds. A..
25
26 Nov
OW
  Carnegie er gå i offensiven de sidste par dage omkring deres rolle i OW Bunker sagen.  Flere medie..
23
22 Nov
VWS
tauser, det korte svar er:......................................................................... ..
22
26 Nov
VWS
@MENA .. dit indlæg giver ikke mening i forhold til diskussionen. Men som sædvanlig kommenterer du f..
21
06:17
BAVA
Hermed mit første indlæg som nok bliver et lidt længere et af slagsen. Har fulgt Bavarian Nordic med..
19
26 Nov
VWS
Du burde forvises fra dette forum. Hold kæft hvor er du trættende at høre på!! Du skal nedgøre alt o..
16
21 Nov
SAS-DKK
Jeg har i de sidste par måneder kikket lidt nærmere på SAS. Årsagen til min nysgerrighed skyldes;   ..
16
23 Nov
OW
Jeg er stadig af den holdning at Altor burde betale samtlige 3 mia. kr. tilbage som de har fået af O..
14

Tech Companies Send Criticism Along With NSA-Related Data -- Update

04/02/2014 00:06:00
By Danny Yadron Technology companies including Google Inc. and Microsoft Corp. released new figures on the amount of data requests they received from U.S. ..

U.S. Hot Stocks: Hot Stocks to Watch

03/02/2014 14:07:00
Among the companies with shares expected to actively trade in Monday's session is Herbalife Ltd. (HLF). Herbalife Ltd. (HLF) raised its fourth-quarter outl..

Pfizer Study Meets Primary Endpoints

03/02/2014 13:05:00
Pfizer Inc. (PFE) said Monday that a Phase 2 trial of its advanced breast cancer treatment met its primary endpoint. Pfizer said a study comparing the effec..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
PayPoint plc : Interim Results
2
Cytokinetics to Participate in the 26th Annual Piper Jaffray Healthcare Conference
3
Geron to Present at the 26th Annual Piper Jaffray Healthcare Conference
4
Sun Communities, Inc. Announces Acquisition of 31 Properties in First Closing of American Land Lease Manufactured Housing Portfolio from Green Courte Partners
5
Byggmästare Anders J Ahlström Fastighets AB (publ): Interim Report January - September 2014
Euroinvestor around the globe: Euroinvestor.dk | Euroinvestor.se | Euroinvestor.no | Euroinvestor.fr | Forexinvestor.com| Wisselkoersen.nl | Valuta.se | Valutaveksel.no | Divisas.es | Valute.it
Copyright Euroinvestor A/S 2014   Disclaimer and Terms of Use
Quote information is delivered by Interactive Data.
Data is delayed 15-20 minutes according to the distribution agreements set by the different exchanges.
 
27 November 2014 19:20:55
(UTC) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20141126.1 - EUROWEB3 - 2014-11-27 20:20:55 - 2014-11-27 19:20:55 - 1000 - Website: OKAY