Singapore, November 19 (Reuters) - The yen against the U.S. dollar hit the lowest point in seven months, on Monday, hurt Japan's new government will push the Bank of Japan to take aggressive monetary stimulus measures to stimulate economic growth is expected to .
The dollar rose to as high as 81.59 yen on electronic trading platform EBS, its highest level since April 25. U.S. dollar pared gains and last traded at 81.25 yen, down 0.2% from late U.S. trade on Friday.
Government elections on December 16, and the leadership of the opposition Liberal Democratic Party (LDP), is expected to win the vote, called on the Bank of Japan to print "unlimited yen, investors dumped the hands of the appreciation of the yen, and set the interest in zero or lower prices in order to stimulate the economy.
Some market participants said the yen may find support after last week fell 2.4% against the U.S. dollar, the Japanese yen exchange rate, the biggest weekly percentage drop in nine months. But analysts said the medium-term outlook remains fragile.
Singapore-based strategist at Swiss Bank (UBS), said: "We have gone too far, too fast in the past week or so," Gareth Berry.
In the short term, the Japanese yen against the U.S. dollar may recover some of the ground if not from last Tuesday announced additional monetary easing, the Bank of Japan, Berry said. Bank of Japan policy meeting held on Monday and Tuesday, but most analysts are skeptical about whether there are any significant changes will be unveiled.
The idea person familiar with the central bank, the Bank of Japan may be pushed back any further monetary stimulus measures until the beginning of next year, the size of the new government's policy.
In view of the potentially more accommodative monetary policy, analysts said the yen could fall further over a longer period of time, such as over the next six months to a year.
Barry said: "In six months, the U.S. dollar / yen high is a great deal, UBS (UBS).
The BOJ line Shirakawa Masaaki (Masaaki Shirakawa) strongly opposed to lowering interest rates to zero, but the end of his term in April, the government can choose his successor.
If the opposition Liberal Democratic Party won the December election of its leaders (Shinzo Abe) Shinzo Abe became the Prime Minister, the White River is considered to be people who may be replaced with a more stable monetary policy.
Not all analysts think the dollar continued to rise against the yen, in particular, because the yield of U.S. Treasury bonds are still very low, limiting the incentive Japanese investors to invest in U.S. bonds, foreign exchange risk is willing to see.
Now the 10-year U.S. Treasury yield of about 1.60%, a record for late July low of only about 22 basis points above.
In addition, the Bank of Japan easing may not be enough to support the type of risk can lead to a sustained decline, the tsung between the the yen Japanese companies and investors said, Okagawa, Sumitomo Mitsui Banking Corporation in the global market analyst in Singapore.
He added that even if the Bank of Japan to ease monetary conditions and pump more money into the banking system, the money may not penetrate into the broader economy.
"The market is more and more excited, just hope that now, Okagawa said."
He added that the dollar may rise to around 82.00 yen, or 82.50 yen, but it is unclear whether such a move would open up the road the dollar climbed to 85-90 yen area.
The euro was steady at 103.65 yen. Previously, the growth of the single currency as high as 104.15 yen, the euro against the yen the highest level in a month or so.
The euro rose 0.1 percent against the dollar to $ 1.2758.
Found that a common currency on the floor of the two-month low of $ 1.2661 last week, suffering a 3.6% slide from mid-October after growing worries about Greece and the euro zone's economic outlook.
The immediate fate of the euro hinges on whether the euro zone finance ministers agreed with the IMF on Greece piecemeal, stop-gap financing plan. Ministers meeting on Tuesday.
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