Yen Reaches Eight-Month High on View Japan May Permit Gains Sept. 28 (Bloomberg) -- The yen touched the highest level in eight months against the dollar on speculation Japan’s new government will allow its currency to appreciate.
The dollar gained versus the euro after European Central Bank President Jean-Claude Trichet told lawmakers in Brussels that it’s “extremely important” to have a strong greenback. The U.S. currency fell below 89 yen for the first time since February after Finance Minister Hirohisa Fujii said the Japanese currency’s moves aren’t excessive.
“The Japanese finance minister talked down the risk of currency intervention, and that is a red flag to the bulls,” said Paul Robson, a currency strategist at Royal Bank of Scotland Group Plc in London. “I expect the yen to move stronger against the dollar.”
The dollar strengthened versus the 16-nation currency after Trichet said the “solidity of the dollar is very important.” The euro reached a one-year high of $1.4844 on Sept. 23, making European exports more expensive.
Yen Reaches Eight-Month High on View Japan May Permit Gains
Sept. 28 (Bloomberg) -- The yen rose against all of its 16 most-traded counterparts tracked by Bloomberg and touched the highest level in eight months against the dollar on speculation Japan’s new government will allow its currency to appreciate.
Sept. 28 (Bloomberg) -- The yen rose against all of its 16 most-traded counterparts tracked by Bloomberg and touched the highest level in eight months against the dollar on speculation Japan’s new government will allow its currency to appreciate.
The dollar fell below 89 yen for the first time since February after Finance Minister Hirohisa Fujii said the Japanese currency’s moves aren’t excessive. The greenback pared losses after Fujii said people misinterpreted his comments as an endorsement for a strong currency.
“The Japanese finance minister talked down the risk of currency intervention, and that is a red flag to the bulls,” said Paul Robson, a currency strategist at Royal Bank of Scotland Group Plc in London. “I expect the yen to move stronger against the dollar.”
