Japanese government rally against the yen to continue to be patient attitude, coupled with risk aversion driven, yesterday, the Japanese yen bulls push the yen exchange rate high.
Fears overshadowed the market
Yesterday, risk aversion dominated the market, non US currencies, the U.S. dollar, the yen rose.
Recently, the market already worried the global economic slowdown yesterday, the Nikkei fell below the psychological barrier of 9,000 points, and then writing a decline in European stocks European time, so risk aversion to heat up, the trend to non US currency pressure.
Department of the heavy European currency movements. Last week, the ECB s Governing Council member Axel Weber said the ECB will be providing unlimited mobile banking initiatives extend beyond the end of the investors that the euro will keep easing until early next year.
At the same time, analysts began to re institute austerity measures due to slow economic growth caused the problem, the rating company Moody Monday that the slowdown in European economic growth may lead to most countries of the region s sovereign credit rating was cut, the euro Pacific countries and the United Kingdom are facing such problems, the euro, sterling and other adverse trend.
Commodities and currencies under pressure. Australian dollar hit a one month low yesterday, in addition to the impact of slowing global economic growth, the part of analysts and even beginning to think that Australia s political and electoral risk that the Australian pressure.
Japanese government has not shot
With hedging properties, the yen higher against most currencies yesterday, especially the Japanese officials for intervention in currency markets is still not very clear manner, encouraging the morale of the yen bulls.
Under the auspices of the risk aversion, the dollar lower against the yen Tuesday, yesterday afternoon, the Japanese Finance Minister wild Tianjia Yan held a news conference he refused to comment on the foreign exchange market intervention, but he said that excessive and disorderly exchange rate movements may harm the economy and financial system, need to communicate closely with the Bank of Japan to make appropriate and flexible actions.
After the publication of these remarks, the dollar against the Japanese yen fell to fresh 15 year low of 84.1, also the euro against the yen also hit a nine year low. Analysis, wild Tianjia Yan s speech to investors that the possibility of Japanese intervention in the yen lower.
The recent risk aversion in the Japanese yen higher step by step, but the dollar fell below 85 yen after the Japanese market is afraid of possible interventions, the U.S. dollar against the yen into a correction, because the Japanese yen higher against the Japanese over may cause economic damage to the Japanese government asked the Bank of Japan intervention, but so far, in addition to senior officials of Japan s closely watching the yen exchange rate, but also do not see substantive action, so investors began to intervene in Japan measures the possibility of shaking.
Tuesday, Japanese Finance Minister s speech that challenged emotional temperature, the risk aversion of the stimulation and promotion of risk reduction interventions, the yen rose for resistance.
Analysts believe that the decline as investors determine the risk of intervention, the yen market outlook will probably rise further, but had dominated the market in the recent atmosphere of hedging, the dollar s decline against the yen has not yet bottomed out.
According to Japanese media reports, the Japanese Ministry of Economy is planning to raise 100 billion yen to subsidize damaged in the appreciation of the yen of Japanese companies.
In addition, the Japanese government may be about to launch a new economic stimulus package, while the Bank of Japan may be further relaxation of policies to boost the domestic economy.
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