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Dollar down vs Yen after Government expressed concerns about persistent Yen weakness.

Discussion in 'Forex Daily News & Outlook' started by prav, Jun 27, 2007.

  1. prav

    prav Moderator
    Staff Member

    Apr 28, 2007
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    The Dollar was lower against the Yen Tuesday after Japan's government expressed concerns over persistent weakness in its currency, sparking fears of a sudden spike in the Yen. UsdJpy slumped to a 122.81 session's low after Japanese Finance Minister Koji Omi warned about the risks of one-way currency bets and said the government is watching the Yen's foreign exchange levels ?very closely?. Warning about Yen weakness by Japanese officials have been made before, but analysts noted the remarks have been made more frequently in recent weeks and are a bit stronger than before. Sterling reached as high as 2.0017 Tuesday, its highest level in nearly two months, after Bank of England Deputy Governor John Gieve said UK interest rates may not be high enough yet to bring credit and nominal demand growth down to sustainable levels. This further reinforced expectations that the England's Central Bank could lift its key bank rate from the current 5.5% when it meets in July.


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