Market News
May 21, 2013 @ 7:23 am

Yen weakens versus dollar after Amari talks about exchange rate again

The yen resumed weakness against the dollar on Tuesday after Japan’s Economy Minister Akira Amari spoke again to reporters and downplayed comments he said on Monday which sent the Japanese currency tumbling over 1 percent against the dollar.

Amari tried to change his remarks when he said the strength has “been corrected a lot” and further weakness may hurt “people’s lives” and it was the government’s job to minimize that.

Today Amari tried to clarify what he said regarding the correction levels of the yen.

“I have previously said that the overly strong yen is in the process of being corrected,” Amari told reporters in Tokyo today. “I will not say it has been corrected, or where it will finish,” he added.

USDJPY recovered from yesterday’s decline and moved up to 102.75 after opening at 102.25. On Monday the pair tumbled to as low as 101.95.

The yen also gave way to the euro, as EURJPY opened at 131.71 and rose to 132.28 yen.

Euro tried to hang on to yesterday’s gains against the dollar, hovering above the 55-period moving average around $1.2860 and capped at $1.2902.

There are no key euro zone data today so euro is expected to remain steady. Direction for the EURUSD will come mainly from any catalyst to the dollar’s move.

The next trigger for a dollar move could come tomorrow when the chairman of the US Federal Reserve, Ben Bernanke, gives his latest update on the US economy.

Sterling gave up some gains made versus the greenback when GBPUSD hit a high of $1.5279 yesterday, falling to a low of $1.5220 in Asia today.

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