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
15 Feb
 
En debat i forum i dag løb lidt af vejen, og moderator måtte slette rigtig mange indlæg ”fordi indlæ..
137
14 Feb
VWS
Nu har jeg haft lidt tid til at kigge på det nyligt offentliggjorte regnskab for 2016. Baseret på de..
82
14 Feb
FING-B
Investering er umiddelbart blevet til en vittighed. Før i tiden investerede man i et selskab, man tr..
26
18 Feb
OMXC25
Den rammer da noglenlunde godt.      http://finans.dk/live/opinion/ECE9365426/den-stoerste-trussel-m..
25
15 Feb
FING-B
erikanthon .... ANON ....   Nu er det da vist tiden, at du får et lødigt, ud fra den viden jeg har. ..
25
14 Feb
E:PROTCT
  Jeg har flere gange analyseret det norske forsikringsselskab, Protector, som er et yderst interess..
23
18 Feb
OMXC25
tonnio: Jeg er ikke i tvivl om, at et meget stort flertal af danskerne ville have stemt ja, til at v..
14
15 Feb
PNDORA
Tak for det svinske svar. Det gav mig muligheden for at se hvor jeg havde misforstået regnestykket. ..
14
17 Feb
 
omglol,   Hvis du er valueinvestor, er Maj Invests Kurt Karas spritnye: "Den rationelle investor" en..
13
14 Feb
ONXEO
Jeg ved godt, jeg lige har postet dette: Men jeg vil så gerne have lidt respons og jeg har faktisk b..
13

Form 8.5 (EPT/RI) - E2V Technologies plc

07/02/2017 07:47:25
FORM 8.5 (EPT/RI) PUBLIC DEALING DISCLOSURE BY AN EXEMPT PRINCIPAL TRADER WITH RECOGNISED INTERMEDIARY STATUS DEALING IN A CLIENT-SERVING CAPACITY ..

Majedie Asset Management Ltd : Form 8.3 - TESCO PLC

06/02/2017 15:31:59
FORM 8.3   PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY A PERSON WITH INTERESTS IN RELEVANT SECU..

Alliance Trust PLC : Transaction in Own Shares

06/02/2017 07:00:03
6 February 2017  Alliance Trust PLC TRANSACTION IN OWN SHARES  The Board of Alliance Trust PLC ("the Company") announces that on 3 February 2017 the Comp..

Most read news

  • 24 hours
  • 48 hours
  • 1 week
1
JACC: Clinical Electrophysiology Manuscript Featuring BioSig's PURE EP System in Top Five Most Influential of 2016
2
JACC: Clinical Electrophysiology Manuscript Featuring BioSig’s PURE EP System in Top Five Most Influential of 2016
3
BIOHIT GROUP FINANCIAL STATEMENT RELEASE 2016
4
Thinfilm Completes Purchase of EAS Manufacturing Equipment for Roll-to-Roll Line
5
Impinj and STANLEY Healthcare Announce Partnership and Platform Integration

Buy and sell signals

  • Trend
  • Moneymachine

Copyright Euroinvestor A/S 2017   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.
 
21 February 2017 00:35:45
(UTC+00:00) Dublin, Edinburgh, Lisbon, London
Version: LiveBranchBuild_20170217.2 - EUROWEB1 - 2017-02-21 01:35:45 - 2017-02-21 00:35:45 - 1000 - Website: OKAY