Forex News
May 20, 2013 @ 8:08 am

Yen jumps after warnings of excessive decline by Japanese economy minister

The yen crawled back some losses against the dollar in early Monday trading following comments by Japan’s economy minister who warned that excessive decline of the Japanese currency is risky. He added that this pullback has almost been corrected.

Minister Akira Amari indicated that further yen weakness could have a negative impact on Japan’s economy.

USDJPY tumbled after his remarks during the Asian session at the start of the new trading week, reaching as low as 101.95 yen, the lowest since last Thursday. The pair subsequently consolidated at 102.60, down 0.5 percent.

The yen also rose against other major peers, with EURJPY dipping to a low of 130.91 before steadying around 131.90, down 0.4 percent.

The yen is unlikely to gain further also because demand for the dollar continues to be growing amid speculation that the US Federal Reserve will slow down its quantitative easing program by the end of this year after improving US economic data.

On Friday a report by the University of Michigan showed that US consumer sentiment rose to an almost six year high in May.

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