Yen Drops on Speculation Japan Authorities Will Weaken Currency

Discussion in 'Wall St. News' started by ASusilovic, Jul 20, 2010.

  1. July 20 (Bloomberg) -- The yen fell for a second day against the dollar on speculation the Bank of Japan will intervene to weaken the currency after it climbed to a seven- month high last week.

    The yen dropped versus all 16 of its major counterparts as importers sold the currency and technical indicators signalled the recent rally was overdone. The euro gained for a second day on optimism stress-test results from European banks this week will show the region’s debt crisis is easing. The Australian dollar snapped a three-day losing streak as gains in Asian shares spurred demand for higher-yielding assets.

    “The yen’s falling as the risk background is more positive, along with talk of BoJ intervention,” said Adam Cole, head of global currency strategy at Royal Bank of Canada in London. “The yen’s move against the Aussie dollar, in particular, indicates there’s a better bid for risk. Sentiment for the euro is improving ahead of the European bank stress tests.”

    You´re looking for action ? AUD/JPY...:cool:
  2. I've been reading these headlines about yen intervention for 2 days, but I'm looking at $/Y and AUD/Yen and they're pretty much in the same spots they were on Sunday night - nothing to see here, move along.
  3. Seems, AUD is weaker across the board because of falling commodity prices across the board.
  4. Not seeing any AUD weakness on my end..
  5. It's a binary world. aUD moves almost exactly tic for tic with the s&p